Silicon Valley Bank went bankrupt, gold prices rose!
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The US Federal Deposit Insurance Corporation (FDIC) reported that a trustee has been appointed to Silicon Valley Bank, which caused a decline in the markets.
The bankruptcy of the SVB was described as one of the largest recorded bankruptcies in the US since the 2008 global financial crisis.
The share price had lost more than 60 percent yesterday after the SVB closed its $21 billion bond position with a loss of approximately $1.8 billion and announced that it would raise more than $2 billion in capital.
After some venture capital investors advised companies to withdraw their money from the bank, its operations were suspended as the bank continued to lose in the futures market.
The US Federal Deposit Insurance Corporation (FDIC), on the other hand, reported that a trustee was appointed to the SVB, which caused a decline in the markets. In the statement made by the FDIC, it was noted that the SVB was the first FDIC insured institution to go bankrupt this year.
IT ALSO HIT EXCHANGES
Stock indices, which declined on March 7, with the hawkish tone coming to the fore in the statements made by the US Federal Reserve (Fed) Chairman Jerome Powell in the US Senate and pointing out that the final interest rates will probably be higher than previously predicted, this week with the bankruptcy of the SVB. suffered heavy losses.
With the effect of SVB’s bankruptcy, the weekly loss in the S&P 500 index in the New York Stock Exchange reached 4.5 percent.
At the close of yesterday, the Dow Jones index depreciated by more than 340 points and fell by 1.07 percent to 31,909.64 points. The S&P 500 index fell 1.44 percent to 3,861.73 points, and the Nasdaq index fell 1.76 percent to 11,138.89 points.
The market value of banks in the US melted by about $80 billion last week.
STRONG RISE IN GOLD PRICES
Concern over the news of SVB’s bankruptcy caused gold prices to soar. The ounce gold price increased by more than 2 percent to $ 1870 yesterday. After Powell’s speech on March 7, the gram gold price, which decreased to 1102 TL, rose to 1140 TL.
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