U.S. regulators’ swift reaction to the collapse of Silicon Valley Bank and two other lenders partially restored calm to markets, but concerns remain over the stability of the global financial system.
The government is racing to orchestrate a US$30 billion rescue of First Republic Bank by the nation’s largest financial institutions after the California lender’s shares continued tanking. Meanwhile in Europe, Credit Suisse’s own financial woes deepened, prompting the Swiss government to offer a lifeline. While Credit Suisse’s issues are unrelated to those of the failed U.S. banks, they further exposed deep anxiety in global financial markets.
