Lede

Treasury Secretary Janet Yellen assures investors of the safety of American bank deposits while committing to more measures to combat crises, as bank stocks continue to decline.

Summary

In the face of declining bank stocks and rapid interest rate hikes, US Treasury Secretary Janet Yellen reassures investors about the safety of American bank deposits and the availability of tools to tackle crises. Bank stocks have been on a downward trend, with some attributing this to interest rate hikes aimed at controlling inflation. The Bank of England's recent rate hikes have caused further concern, as investors adjust to more challenging economic and lending conditions.

Takeaways

• U.S. Treasury Secretary Janet Yellen reassures investors about American bank deposit safety

• Commitment to additional measures if needed to address crises

• Bank stocks sliding due to rapid interest rate hikes to control inflation

• Silicon Valley Bank collapse triggers turmoil; most vulnerable US banks lose about $1 trillion in deposits

• Yellen emphasizes that this turmoil is different from the financial crisis 15 years ago

• Bank of England hikes rates, notes large and volatile moves in financial markets, but maintains that Britain's banking system is resilient

• Investors adjusting to challenging economic and lending conditions

• Deutsche Bank, Commerzbank, and HSBC shares fall; U.S. banking shares experience mixed results

• First Republic Bank stock market value drops by 90%, market capitalization now just over $2 billion

• Other U.S. banks facing scrutiny after the collapse of SVB and Signature Bank

• S&P 500 banks index falls over 40% from its record high in February 2022

• Swiss National Bank raises benchmark interest rate, averting a financial disaster with the takeover of Credit Suisse by UBS

• UBS and Credit Suisse under U.S. Department of Justice probe for possible assistance to Russian oligarchs in evading sanctions

• Concerns grow over investors' exposure to fragile banking sector and the $275 billion AT1 bond market

• Politicians cautious of public perception of bank bailouts after costly rescue in 2008

• U.S. Senate Banking Committee calls on former CEOs of SVB and Signature Bank to testify

• Citizens Financial Group Inc works on bid to acquire Silicon Valley Bank's private banking business, controlled by the FDIC