A Timeline of How the Banking Crisis Has Unfolded

First Republic Bank was seized by regulators and sold to JPMorgan Chase on Monday. It is the latest casualty of the banking crisis that saw other troubled lenders fail in March.

Silicon Valley Bank, one of the most prominent lenders to technology startups and venture capital firms, first filed for bankruptcy on March 10th. Real estate lending business. The panic also led to major Wall Street banks stepping in to offer the First Republic $30 billion, and Swiss bank Credit Suisse to buy its rival UBS.

As investors and bank customers worry about the stability of the financial system, federal authorities are taking steps to protect depositors and ensure that they have access to all their funds, alleviating concerns. I am trying to calm down.

Here is a timeline of events related to the global financial turmoil.

March 8

  • and Letter to Stakeholders, Silicon Valley Bank says it needs to strengthen its financesannounced plans to raise $2.25 billion in capital to deal with a loss of about $1.8 billion and increasing exit requests from tech companies in a dark economic environment.

  • Rating agency Moody’s lowered the bank’s bond rating.

  • Separately, California-based bank Silvergate has been lending to cryptocurrency companies. announced that it would cease operations and liquidate its assets After suffering heavy losses.

March 9

  • Gregory Becker, CEO of Silicon Valley Bank urged to venture capital firms keep calm on a conference call.But panic spread on social media Also, some investors advised companies to move funds out of banks.

  • “It’s been a tough day,” Silicon Valley Bank executives wrote in a memo to clients, but the bank is “actually very healthy and it’s hard to see many smart investors tweeting otherwise.” I’m sorry,” he wrote.

  • Bank stock plummeted 60 percent Clients have withdrawn about $40 billion.

March 10

  • The biggest bank failure since the 2008 financial crisis Silicon Valley Bank Collapse after execution of depositThe Federal Deposit Insurance Corporation has announced it will take over the 40-year-old institution.

  • Investors began selling stakes in bank peersincludes First Republic, Signature Bank and Western Alliance, which had similar investment portfolios. Shares of JP Morgan, Wells Fargo and Citigroup were broadly flat, shielding the nation’s largest banks from the impact.

  • Treasury Secretary Janet L. Yellen reassured investors The banking system is resilient and has expressed “total trust in banking regulators”.

  • Signature Bank, a 24-year-old institution providing lending services to real estate companies and law firms, A torrent of deposits leaving the coffers After the customer started panicking.

March 12th

  • new york regulator close the signing bankjust two days after the Silicon Valley Bank collapsed, out of concerns that keeping banks open could threaten the stability of the financial system. is.

  • Federal Reserve, Treasury, FDIC announced The “depositor You can access all your money. ” And the losses from the failure of either bank will not be “paid by the taxpayer.”

  • The Federal Reserve said it set up emergency loans A program, approved by the Ministry of Finance, to provide additional funding to eligible banks so that they can “meet the needs of all depositors.”

March 13th

  • In his speech, President Biden Claimed US banking system is secure and taxpayers will not pay any bailouts It is trying to avoid a crisis of confidence in the financial system.

  • regional bank stocks rammed After Unexpected Foreclosures of Silicon Valley Bank and Signature BankFirst Republic shares fell 60%.

  • Bank of England, HSBC buy British subsidiary of Silicon Valley Bank.

March 14th

  • bank stocks Recovered part of their loss Investor fears began to ease.

  • According to the Department of Justice and the Securities and Exchange Commission, Open investigation The collapse of Silicon Valley Bank.

March 15th

  • credit suisse stock I fell After investors began to fear that the bank would run out of money.An official at the Swiss Central Bank said it would intervene and provide support To Credit Suisse if necessary.

March 16th

  • 11 of the largest US banks Gathered to inject $30 billion into the First Republicwas in danger of collapsing. The plan was devised by Yellen and JPMorgan Chase CEO Jamie Dimon. The Treasury Secretary believed action by the private sector would help underscore confidence in the stability of the banking system.

  • Credit Suisse is $54 billion borrowed To stave off concerns about its financial health from the Swiss National Bank.

  • Ms. Yellen testified before the Senate Finance Committee And he tried to reassure the public that U.S. banks were “sound” and that their deposits were safe.

March 17th

  • of Stock prices of many banks continued to fall, The previous day’s gains were wiped out as investors continued to worry about financial turmoil.

  • A day after the $30 billion lifeline was announced, First Republic Stocks plunge again It was in talks to sell parts of its company to other banks and private equity firms.

March 19th

  • UBS, Switzerland’s largest bank, agreed to buy smaller rival Credit Suisse for about $3.2 billion. of The Swiss National Bank has agreed to lend up to CHF 100 billion to UBS to help complete the transaction.Swiss financial regulators have also cleared $17 billion worth of Credit Suisse bonds, removing the need for UBS shareholders to vote in the deal.

  • The Federal Reserve and five other global central banks have taken steps to make the dollar readily available. Relieve pressure on the global financial system.

  • of FDIC said that he entered Agreement to sell 40 former branches of Signature Bank To New York Community Bancorp.

March 26th

  • First Citizens BancShares agreed acquisition Silicon Valley Bank in government-backed deals that included the purchase of about $72 billion in loans at a $16.5 billion discount. It also included the transfer of all bank deposits worth $56 billion. Approximately $90 billion of bank securities and other assets were not included in the sale and remained in FDIC custody.

March 30th

  • Mr. Biden asked financial regulators increase surveillance Percentage of midsize banks facing reduced scrutiny after the Trump administration eased some regulations. The president proposed requiring banks to protect themselves from potential losses and maintain sufficient access to cash to make them resilient to crises, among other things.

March 28th

  • Fed, FDIC and Treasury officials while testifying before Congress faced tough questions from legislators About the factors that led to the failure of Silicon Valley Bank and Signature Bank.

  • Michael S. Barr, Fed Vice Chairman for Oversight, said: Blame bank executives The Fed said it was investigating what went wrong, Supervisors offered little explanation for why they failed to prevent the collapse.

April 14th

  • The nation’s largest banks, including JPMorgan Chase, Citigroup and Wells Fargo Reported Robustness Earnings in the first quarterThis indicates that many customers have developed a strong preference for larger institutions, which they consider to be more secure.

April 24th

  • of the First Republic According to its latest earnings report, the bank lost $102 billion in customer deposits in the first quarter — well over half of the $176 billion we had at the end of last year — not including the temporary $30 billion lifeline. The bank said it would cut its workforce by up to a quarter of his and executive compensation by an unspecified amount.

  • In a conference call with Wall Street analysts, bank executives said little and declined to be asked questions.

  • of Bank stocks fell about 20% In long-term trading after rising more than 10% before the release of the report.

April 25th

April 26th

  • of the First Republic Stock continues Its fall, about 30% lower It closed at just $5.69, down from around $150 a year ago.

April 28th

  • Federal Reserve Board released a report blaming itself For not taking “forceful enough action” Before the collapse of Silicon Valley Bank. The FDIC released another report criticizing Signature Bank’s “poor controls” and poor risk management practices.

May 1st

  • the first republic Taken over by FDIC Immediately sold to JPMorgan ChaseIt became the second largest bank in the United States by assets, after Washington Mutual in 2008.

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