Janet Yellen, Secretary of the Treasury, said that they were working to avoid contagion of the damage to the rest of the banks, although without carrying out measures to save it, for which reason the Deposit Guarantee Agency took control on Friday.
“Let me make it clear that during the financial crisis, there were investors and owners of large systemic banks that were bailed out…and the reforms that have been put in place mean we won’t do that again, but we are concerned about depositors and we are focused on trying to satisfy their needs,” the secretary told CBS.
The actions have given results only for the big banks, which have been saved, while those of medium or regional size withdrew from the Stock Market, such as First Republic California and Signature Bank.
UK Chancellor of the Exchequer Jeremy Hunt said the bank’s downfall posed a big risk to Britain’s tech sector. In addition, businessmen have warned in recent hours about a probable shock wave for startups in India.
The keys of the fall
- The bank groups businesses with funds that invest in companies that do not invest in the stock market.
- It is the 16th largest US bank by the size of its assets.
- It began to suffer from the deterioration of the sector, as well as the rise in interest rates in the United States.
- SVB Financial Group, the agency’s parent, said on Wednesday March 7 that it would try to raise $2.25 billion of fresh funds. He sold a $21 billion portfolio of financial securities at a loss of $1.8 billion.
- Clients began to withdraw while the bank worked to obtain the necessary capital to negotiate its sale to another bank, but the authorities announced that they had taken control of it.