The government and the American banking authorities take the field to avoid the domino effect of Silicon Valley Bank.
As many observers have already highlighted, in all likelihood the collapse of the Californian bank does not herald a new financial crisis in the footsteps of that of 2008 and for this reason the Biden administration is not thinking in the slightest of a direct bailout, but is nonetheless ready to protect deposits and to ensure that other institutions do not suffer the contagion.
A risk that is by no means excluded in the United Kingdom, where many companies in the technology sector are largely exposed and run, according to the alarm raised by the Chancellor of the Exchequer, Jeremy Hunt, "a serious risk".
In a phone call with the governor of California,
the president of the United States inquired directly about the situation, but it was Janet Yellen, secretary of the Treasury, who reassured the markets and explained what the intervention strategy will be.
The government is working closely with banking regulators to help those with deposits at the failed bank and similar institutions, but without resorting to any public bailouts.
"During the financial crisis, there were investors and owners of large systemic banks who were bailed out, but the reforms that have been put in place mean we won't do that again," Yellen clarified in a television interview.
"However, we are concerned about those with deposits and are focused on trying to meet their needs. I worked all weekend"
with the banking regulators to "design adequate policies to address this situation", the head of the Treasury underlined again, explaining that the Fdic is considering a "wide range of options", which also include acquisitions.
The auction procedures would have started late on Saturday evening and the final bids should be received by Sunday evening.
Even Elon Musk, in one of his now inevitable Twitter releases, has not ruled out the idea of a purchase.
But as reported by Bloomberg, the Federal Deposit Insurance Corp and the Federal Reserve are also evaluating the creation of an ad hoc fund to guarantee the largest possible number of deposits with potentially troubled banks.
However, Yellen assured that the banking system is "safe and well capitalized", as well as "resilient".
"Americans need to feel confident that the banking system is safe and sound, that it can meet the credit needs of households and businesses, and that depositors don't have to worry about losing access to their money."
Words that have in some way responded to the appeals of investors, entrepreneurs and some politicians, above all of democratic extraction, who have urged the government to guarantee all account holders, avoiding a stampede towards the larger banks which would jeopardize the local ones of smaller dimensions, causing its collapse as already happened to Svb.
The FDIC only guarantees deposits up to $250,000.
which means that those who own more important capital are already tempted to transfer them elsewhere.
Not only that, according to data reported by the Financial Times, 96% of Svb's customers were not covered at the end of last year by the necessary insurance policy.
However, the goal is to find a solution as quickly as possible.
It is no coincidence that the Fed has called an extraordinary meeting of its board for tomorrow morning.
The stated reason is examination of the rates that will be charged by individual Federal Reserve banks locally.
Not a coincidence, considering that as the cause of the bankruptcy, analysts identify precisely the rise in the cost of money by the central bank.
96% of SVB's customers were not covered by the necessary insurance policy at the end of last year.
However, the goal is to find a solution as quickly as possible.
It is no coincidence that the Fed has called an extraordinary meeting of its board for tomorrow morning.
The stated reason is examination of the rates that will be charged by individual Federal Reserve banks locally.
Not a coincidence, considering that as the cause of the bankruptcy, analysts identify precisely the rise in the cost of money by the central bank.
96% of SVB's customers were not covered by the necessary insurance policy at the end of last year.
However, the goal is to find a solution as quickly as possible.
It is no coincidence that the Fed has called an extraordinary meeting of its board for tomorrow morning.
The stated reason is examination of the rates that will be charged by individual Federal Reserve banks locally.
Not a coincidence, considering that as the cause of the bankruptcy, analysts identify precisely the rise in the cost of money by the central bank.
It is no coincidence that the Fed has called an extraordinary meeting of its board for tomorrow morning.
The stated reason is examination of the rates that will be charged by individual Federal Reserve banks locally.
Not a coincidence, considering that as the cause of the bankruptcy, analysts identify precisely the rise in the cost of money by the central bank.
It is no coincidence that the Fed has called an extraordinary meeting of its board for tomorrow morning.
The stated reason is examination of the rates that will be charged by individual Federal Reserve banks locally.
Not a coincidence, considering that as the cause of the bankruptcy, analysts identify precisely the rise in the cost of money by the central bank.
