Beautiful Virgin Islands

Tuesday, Apr 22, 2025

Biden's Pledge to Save Banking System as SVB Collapse Triggers Market Chaos

Biden's Pledge to Save Banking System as SVB Collapse Triggers Market Chaos

Panic in the Markets as Signature Bank and Silicon Valley Bank Collapse; SVB Failure Causes Stock Market Value Losses in US and Europe.
U.S. President Joe Biden has promised to take whatever action is necessary to address a banking crisis that is threatening to destabilize markets worldwide. Over the weekend, the United States moved to guarantee deposits at Silicon Valley Bank (SIVB.O), but the move failed to convince investors that other banks were safe. The collapse of SIVB and Signature Bank (SBNY.O) has resulted in emergency measures by regulators to mitigate the impact of the banking crisis.

The fallout has affected big banks like JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Bank of America (BAC.N), causing a tumble in the stock market. Furthermore, the STOXX banking index (.SX7P) in Europe saw its largest one-day fall in over a year. German banks like Commerzbank (CBKG.DE) fell as much as 12.7%, while Credit Suisse (CSGN.S) hit a new record low after falling 15%.

President Biden reassured Americans that the banking system is safe and asked Congress and regulators to strengthen bank rules. Despite this, a closely-watched indicator of credit risk in the U.S. banking system edged up, and the volatility index (.V2TX) in Europe jumped to its highest level since October 2022. The price of gold also surged, as investors sought safe havens amid the crisis.

In addition to the banking crisis, a re-pricing of interest rate expectations has sent waves through the markets, with investors betting the Fed will be reluctant to hike next week. This has resulted in a drop in two-year U.S. Treasury yields, which is set for its biggest one-day fall since 1987.

The collapse of SIVB has also resulted in the closure of crypto-focused bank Silvergate (SI.N), which last week disclosed plans to wind down operations and voluntarily liquidate. The banking crisis has wiped out over $100 billion in stock market value for U.S. banks, with European banks losing a similar amount.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
UK Psytrance Festival Cancelled Amid Local Protests Over Noise Concerns
French Far-Right Writer Renaud Camus Denied Entry to UK
UK Police Force Updates Search Policy for Trans Individuals in Custody
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
Canada's Federal Party Leaders Engage in Final Debate Ahead of General Election
Ukraine and US Sign Outline of Minerals Deal
Fast Food Chain Refuses to Apologize for Online Comment About Katy Perry's Space Voyage
New York Attorney General Letitia James Faces Criminal Referral for Alleged Mortgage Fraud
Mark Cuban admits support for Trump executive order: ‘Gotta be honest’
US Senator Meets with Deported Immigrant in El Salvador Amid Custody Dispute
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
UK Government Assumes Control of British Steel's Scunthorpe Plant Amid Shutdown Threat
UK MP Wera Hobhouse Denied Entry to Hong Kong During Family Visit
Bangladesh Issues Arrest Warrant for UK MP Tulip Siddiq
China Urges United States to Cancel Tariffs Amid Escalating Trade Tensions
The Empire’s USD Pyramid Scheme Is Working Brilliantly—So Why ‘Fix’ It?
China Raises Tariffs on U.S. Goods to 125% Amid Escalating Trade Dispute
Elon Musk Reports $150 Billion in Projected Government Savings Amid Fraud Investigations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
U.S. Tariff Escalation Sparks Global Trade Tensions
Helicopter crashes in NYC with four people on board.
Australia Dismisses China's Suggestion to Collaborate Against US Tariffs
EU Postpones Response to US Tariffs
×