In guaranteeing all deposits at Silicon Valley Bank and Signature Bank, the US Federal Reserve is on the hook for $140 billion. More than $400 billion so far in direct support.

Sunday, March 19 - Switzerland’s biggest bank, UBS, agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic. The result was an agreement with a group of American lenders to deposit tens of billions of dollars of cash into First Republic to staunch the bleeding. In a meeting in Washington, US Treasury Secretary Janet Yellen and Jamie Dimon, the CEO of America’s biggest bank, drew up plans for a private sector rescue. Thursday, March 16 - First Republic Bank was teetering on the brink as customers withdrew their deposits. Investors and customers are worried that it doesn’t have a credible plan to reverse a long-term decline in its business. It calmed the immediate market panic but the global player is not out of the woods yet.

(CS) collapse by as much as 30%, Swiss authorities announced a backstop for the country’s second-biggest bank. Wednesday, March 15 - After watching shares in Credit Suisse Both banks had an unusually high ratio of uninsured deposits to fund their businesses. Sunday, March 12 - The FDIC shut down Signature Bank after a run on its deposits by customers who were spooked by the implosion of SVB. That triggered the panic that led to its downfall. It tried - unsuccessfully - to sell shares to shore up its finances. The wheels started to come off 48 hours earlier when the bank took a multibillion-dollar loss cashing out US government bonds to raise money to pay depositors. It was the biggest banking collapse in America since Washington Mutual in 2008.

Markets remain on edge: Benchmark indexes of shares in US and European banks have lost 20% and 13% respectively since the close of trading last Wednesday.įriday, March 10 - The US government’s Federal Deposit Insurance Corporation (FDIC) took control of SVB. (FRC) - has been propped up, and the first major threat since 2008 to a bank of global financial significance - Credit Suisse - has been averted after it was taken over by UBS.īut the relative calm has been restored only thanks to the provision of huge sums of emergency cash from lenders of last resort - central banks - and some of the industry’s strongest players. Justin Sullivan/Getty ImagesĪ week on, a second US regional bank - Signature Bank - has been shut down, a third - First Republic Bank A person walks by the First Republic Bank headquarters on Main San Francisco, California.

The bank that bust the world