However, according to some experts, the resolution of SVB and Signature Bank and the bankruptcy of Silvergate will not trigger a crisis like the one that occurred after the Lehman Brothers bankruptcy.
The major European banks have suffered sharp falls in the stock market because of the unforeseen consequences for the sector that the bankruptcy of the Americans can have Silicon Valley Bank and signature bank.
The debacle of the Silicon Valley Bank (SVB), which intervened after its shares plummeted for two consecutive days due to serious financial problems, has hit the entire industry outside and inside the United States and sparked fears that some investors may have lost the prologue. of a new crisis similar to that provoked by Lehman Brothers.
He September 15, 2008Lehman Brothers filed for formal bankruptcy following the exodus of most of its customers, drastic losses in the stock market, and the devaluation of its assets by major risk assessors.
These phenomena were mainly caused by Lehman’s involvement in the crisis of the subprime mortgagestaking excessive risks. Subsequently, charges of negligence were filed, which even led to criminal charges. The Lehman Brothers bankruptcy is the largest bankruptcy in US history.
However, according to the opinion of the experts of the Spanish Institute of Analyststhe resolution of SVB and Signature Bank and the bankruptcy of Silvergate will not lead to a crisis like the one that occurred after the bankruptcy of Lehman Brothers.
“The current uncertainty in the market is high, but not comparable to the situation created by the bankruptcy of Lehman Brothers in 2008. Moreover, the banking model of European banks differs from that of North American banks and they are not as involved in the affairs of technology companies,” he explained from the Institute.
Alberto Iturralde, an expert in the stock market, explained to ETB that “US banking products are much more dangerous. So the same probably won’t happen here.” According to the economist Massimo Cermelli“the Federal Reserve has stepped in to prevent damage and prevent contagion. Yet fear has spread.”
The President of the United States Joe Biden He wanted to reassure society by making sure the American banking system is safe. Biden has ensured that the customers of both banks have access to their money.
The Commissioner for Economics Paolo Gentilonihas assured that he sees no “specific risk of contagion” for European banks, although they will closely monitor the evolution of the case from Brussels.
For its part, the Vice President of Economic Affairs, Nadia Calvinohas ensured that the Spanish state’s banks face the scenario of financial “turbulence” with “sound” balance sheets and with a “reinforced” supervisory and regulatory framework.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
