465 billion dollars in sales

The series of crises in the USA started with Silvergate Bank, which operates focused on crypto markets. This crisis was followed by the bankruptcy of Silicon Valley Bank (SVB), which ranks 16th among the big banks of the USA. After SVB, Signature Bank went bankrupt this week. Following Silicon Valley Bank (SVB), New York-based Signature Bank has also been appointed as a trustee.

As the Fed’s rate hikes also played a role in the collapse of the SVB, the largest bank seized since 2008 in the USA, expectations about the course of the policy rate in the coming months have also changed.

After the steps taken by the US regulators to provide additional resources to banks, Biden gave confidence-inspiring statements to both investors and bank customers. However, these steps did not calm the concerns that the problems in the bank would spread to other countries.

Banking shares increased their losses in Asian stock markets, while companies in Japan recorded the biggest declines. Concerns about risks to the banking system caused all stocks to decline. Japan’s Mitsubishi fell 8.3 percent, South Korea’s Hana Finance Group 4.7 percent and Australia’s ANZ Holding 2.8 percent. The total amount withdrawn from the stock markets in two days was $465 billion.

After some venture capital investors advised companies to withdraw their money from the bank, the bank’s losses in the futures market also increased and its operations were suspended.

The share value of the major US banks dropped by $90 billion yesterday, and $190 billion in the last three trading days.

Local and small banks in the USA were the party that saw the biggest losses. Shares of First Republic Bank fell more than 60% after new funding failed to reassure investors and its credit rating was downgraded by credit rating agency Moody’s.

Biden said the government’s actions meant “Americans can believe the banking system is safe” and promised stricter regulations would be introduced after the SVB’s bankruptcy. “Your deposits will be there when you need them,” Biden said.

The bankruptcy of the Silicon Valley Bank was one of the largest recorded bankruptcies in the United States since the 2008 global financial crisis. The largest bankruptcy of this kind was experienced by Washington Mutual during the 2008 crisis.

The bankruptcy of the Bank of Silicon Valley, known as the bank of technology startups, is associated with the tendency of the United States Federal Reserve (FED) to increase interest rates and this situation reduces the risk appetite of investors.

The FED has been implementing an aggressive policy of increasing interest rates since last year to cope with inflation. The risk appetite of investors, whose money became more expensive due to high interest rates, also decreased. This has negatively impacted tech startups, the Bank of Silicon Valley’s main clients, as its investors have become risk-averse.

Over the past few years, the bank has purchased billions of dollars worth of bonds using customers’ deposits, as a typical bank would normally do. Such investments are generally seen as safe, but the value of bonds has fallen with rising interest rates. Lower interest rates were paid than would be paid by a similar bond issued in today’s high-interest environment. This isn’t normally a big deal because banks hold them for a long time unless they have to sell them in an emergency.

Taking steps to prevent the effects of the bankruptcy on the financial system, the US Treasury, the Central Bank and the Federal Deposit Insurance Corporation (FDIC) announced that depositors will be under full protection with their joint statement.

“The US banking system remains on a resilient and solid foundation, largely thanks to post-financial crisis reforms that have protected the banking industry. The steps we’ve taken today, along with these reforms, demonstrate that we will take all necessary steps to ensure depositors’ savings are safe,” the regulator said in a joint statement. ‘ it was said.

Speaking to Reuters, a senior US Treasury official said that this step was taken to stabilize the financial system and protect depositors, and did not mean a bailout for banks.

Successive bankruptcies in the US banking sector have also dealt a heavy blow to many companies, from cryptocurrencies to the aviation sector. From tech companies to aerospace startups and cryptocurrency firms to even Israeli companies, $10 billions of dollars are in the bank.

The firm with the biggest risk right now is Circle, the operator of one of the world’s largest stablecoins. The firm announced that $3.3 billion of its reserves were stuck in Silicon Valley Bank, and the shock triggered a drop in token value. The sudden crash in the price of a stablecoin designed to stay at the $1 stable value has created panic in the market.

US exchange Coinbase has announced that it has temporarily stopped conversions between USDC and the dollar. Circle called for an immediate federal rescue plan for the SVB. Binance, on the other hand, stated that it will stop automatic conversions of USDC to BUSD, a stablecoin bearing the Binance brand.

The US Federal Deposit Insurance Corporation (FDIC) reported that a trustee has been appointed to the Silicon Valley Bank (SVB), which caused a decline in the markets. After the bank’s bankruptcy, citizens came to its headquarters in Santa Clara and waited to withdraw their money.