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Business News/ News / World/  US bails out depositors after Signature Bank, SVB closures: Top 10 updates

The failure of two regional US banks, Silicon Valley Bank and Signature Bank, had negative consequences for Asian markets.

Following the news of the collapse, most Asian markets fell on Monday. Despite the negative impact, officials in the US pledged to protect the economy by strengthening public confidence in the country's banking system.

Top updates on Silicon Valley Bank and Signature Bank collapse:

1. The US government assured all depositors at the Silicon Valley Bank that they could access all their money.

2. The regulators noted that Signature Bank had also failed and was being seized on Sunday. It is to be further informed that Signature Bank is the third-largest bank failure in US history.

3. US President Joe Biden has pledged to hold the individuals responsible for the recent bank failures accountable for their actions. The president also stated that he will give a speech on Monday morning regarding the importance of maintaining a resilient banking system.

4. Silicon Valley Bank, a financial institution with more than $200 billion in assets, experienced a run on the bank.

5. the US Federal Reserve's year-long interest rate hikes have had an impact on the value of securities that it owns.

6. Recent failures of SVB Financial Group's Silicon Valley Bank, Silvergate Capital Corporation, and Signature Bank have had negative consequences for the digital-asset market. The failures have triggered a knock-on effect in the market for stablecoins, which are digital currencies designed to maintain a stable value relative to a particular asset or group of assets.

7. After a US bank collapsed, causing investors to seek out safe havens, gold prices continued to climb in Asia, having already risen 2% on Friday.

8. On Monday, the US dollar fell following the sudden collapse of Silicon Valley Bank and the intervention of authorities to limit the damage. The euro gained 0.44% against the dollar, trading at $1.069, while the sterling rose 0.47% to $1.2085. Additionally, the Australian dollar rose by 0.79% to $0.663, and the kiwi rose by 0.36% to $0.616. In the realm of cryptocurrencies, bitcoin increased by 11.12% to $22,330.00, and Ethereum rose 12.12% to $1,598.90.

9. Bill Ackman, Pershing Square Capital Management CEO has noted that the collapse of SVB will be followed by the failure of more banks despite intervention.

10. On Monday, the Indian equity market started off on a positive note, as the benchmark index Sensex rose by 344 points. This increase was driven by a combination of positive investor sentiment and mixed global cues.

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Updated: 13 Mar 2023, 01:16 PM IST
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