After the biggest bank collapse since the 2008 US financial crisis, financial markets are not calming down. The Swiss central bank must help the ailing Crédit Suisse with a credit line worth billions. Share prices of international financial institutions are falling. Now the next big US bank is faltering.
According to a newspaper report, several major banks in the United States, including JPMorgan and Morgan Stanley, could step in to help US bank First Republic, which has come under pressure. Possible options being discussed include a substantial capital injection to support the institute, the Wall Street Journal (“WSJ”) reported Thursday, citing people familiar with the situation.
First Republic is exploring a number of options, including raising its capital in various forms, it said. A full takeover is also possible, although some insiders consider that quite unlikely at the moment. Whether and what a solution might look like is still uncertain, it said. Any solution of any kind would have to be approved by the regulatory authorities and would ultimately be driven by the institute’s wildly fluctuating share price.
US Treasury Secretary: Banking system remains stable
US Treasury Secretary Janet Yellen stressed that the US banking system remains stable and safe given the jitters in stock markets following the collapse of Silicon Valley Bank (SVB). Bank customers in the US need not worry about their deposits, Yellen said at a congressional hearing in Washington on Thursday. “The government has taken decisive and strong action to build public confidence,” Yellen said.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
