First Republic Bank: Wall St pledges billions to bail out California lender as Credit Suisse pulled off liquidity line – most recently

It was a case of foam, sink, repetition in banking this week, with the collapse of Silicon Valley Bank followed by a much larger crisis in the form of Credit Suisse.

The mid-size SVB was more systemic than many had realised, raising big questions about US oversight.

But there was never any doubt about the dangers of an ailing Credit Suisse, a pillar of the Swiss banking establishment and a (shaky) member of the top flight.

Let’s start with the good that came from the collapse of Silicon Valley Bank, which managed about a quarter of the companies in Britain’s tech sector, and threatened a meltdown.

The British arm was saved by a deal struck over the weekend by the Bank of England, the government and HSBC – the bank which is picking up the pieces after “a competitive process” and (we are told) taxpayers spared a nasty blow into the process.

There’s something comfortingly old about the way this was negotiated behind closed doors. The end result is that the business will move to HSBC UK, meaning depositors can get their money and tech staff can get their wages.

The Santa Clara, Calif.-based tech- and startup-focused lender was taken over by regulators on Friday during a run on its deposits, making it the second-largest bank failure in U.S. history.

Markets stabilize Thursday night on hopes that new lifelines will limit any “contagion” to other banks.

Thomas Kingsley And Alastair Jamieson look what happened.

The collapse of Silicon Valley Bank and Signature Bank has caused some customers to withdraw their money from smaller banks, leading to a windfall of new deposits for larger institutions.

London’s top stocks enjoyed a roller coaster ride on Thursday that saw traders send the FTSE 100 up and down throughout the day, but despite the turbulent trading, it managed to close on a high.

After the index’s worst day in three years on Wednesday, amid worries about the future of banking giant Credit Suisse, trading on Thursday was highly erratic.

The top-tier index initially gained ground and was poised for a rebound as trading opened after Swiss authorities gave the troubled bank a £45 billion emergency loan.

But as the day progressed, it spun around like a yo-yo, even dipping into negative territory at one point. By the end of the day, it was up 0.9%.

It was a case of foam, sink, repetition in banking this week, with the collapse of Silicon Valley Bank followed by a much larger crisis in the form of Credit Suisse.

The mid-size SVB was more systemic than many had realised, raising big questions about US oversight.

But there was never any doubt about the dangers of an ailing Credit Suisse, a pillar of the Swiss banking establishment and a (shaky) member of the top flight.

The Massachusetts Democrat and longtime critic of the financial industry made the comments during a Senate Finance Committee hearing with Treasury Secretary Janet Yellen.

Eric Garcia has the whole story.

Wall Street’s main indices rebounded sharply on Thursday after news and then confirmation that some of the US’s largest financial institutions were coming to the rescue of First Republic Bank.

The banks have agreed to deposit $30 billion in First Republic Bank to show confidence in the US banking system.

Bank of America, Wells Fargo, Citigroup and JPMorgan Chase will each contribute about $5 billion, while Goldman Sachs and Morgan Stanley will contribute about $2.5 billion, the banks said in a press release.

Truist, PNC, US Bancorp, State Street and Bank of New York Mellon will each deposit around $1 billion.

The Dow Jones Industrial Average Index rose 371.98 points, or 1.17%, to close at 32,246.55 points. The S&P 500 gained 1.76% to close at 3,960.34. The Nasdaq Composite was up 2.48% to 11,717.28.

A group of financial institutions has agreed to deposit $30 billion in First Republic to show confidence in the US banking system, the banks announced Thursday afternoon.

Bank of America, Wells Fargo, Citigroup and JPMorgan Chase will each contribute about $5 billion, while Goldman Sachs and Morgan Stanley will contribute about $2.5 billion, the banks said in a press release.

Truist, PNC, US Bancorp, State Street and Bank of New York Mellon will each deposit around $1 billion.