Shockwaves from the collapse of Silicon Valley Bank further pounded global bank stocks as assurances from U.S. President Joe Biden and other policymakers did little to calm markets and prompted a rethink on the interest rate outlook
Major U.S. banks have lost nearly $190 billion since the sell-off began, with regional lenders like First Republic Bank, whichmeant Americans could be confident the U.S. banking system is "safe", while also promising stiffer regulation after the biggest U.S. bank failure since the 2008 financial crisis.as well as taking control of SVB.
The Republican head of the U.S. House Financial Services Committee also sought to shore up support for the banking system, saying on Tuesday that both the FDIC and the Fed had acted within the law. He said he still planned to hold a hearing and review documents, although no date was announced.In a letter to clients, SVB's new CEO Tim Mayopoulos said it was conducting business as usual within the United States and expected to resume cross-border transactions in coming days.
"I recognize the past few days have been an extremely challenging time for our clients and our employees," said Mayopoulos, a former CEO of federal mortgage finance firm Fannie Mae who wasU.S. bank regulators sought to reassure nervous customers who lined up outside SVB's Santa Clara, California, headquarters on Monday, offering coffee and donuts.
"Feel free to transact business as usual. We just ask for a little bit of time because of the volume," FDIC employee Luis Mayorga told waiting customers.
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