Illustration: Gabriella Turrisi/Axios
The banking sector is about to enter a third week of existential questions and see-saw volatility, despite official efforts to stabilize markets and reassure depositors.
In the meantime, the search for causes, lessons and reproaches is already well under way.
What we are looking at: The fate of Silicon Valley Bank, whose financial failings caused the recent banking earthquake, is still up in the air.
- His former relative filed for bankruptcy on Friday. The commercial bank – which was taken over by the US government last week – is not included in this process.
- A second effort to sell the now FDIC-owned bank is underway, after the regulator was unable to find a buyer last weekend.
Separately, First Republic Bank investors are running…again. Stocks were buoyed by the announcement of a $30 billion lifeline on Thursday. But a few hours later, he announced that he was suspending his dividend. The stock cratered another 32% on Friday.
- And Swiss giant Credit Suisse has also failed to find a floor for its shares, two days after securing its own $50 billion lifeline from the Swiss National Bank. The title fell another 8% on Friday in Europe.
In search of causes President Biden set a goal for leaders today, calling on Congress to pass tougher penalties for those who oversee failing banks, writes Axios’ Kate Marino.
- The Fed, meanwhile, said on Monday it intended to examine whether there were any regulatory or supervisory missteps leading to SVB’s collapse, writes Courtenay Brown of Axios. His general review of the bank’s failure is due May 1.