A Full Banking Crisis Isn’t Apparent in the SVB Wreckage

The market is still hunting for weakness among some smaller US banks and even across Europe after US authorities stepped in to guarantee deposits at Silicon Valley Bank. This makes little sense: There should be no snowballing of runs on banks.

March 14, 2023 . 12:37 AM

1 min read

US Federal Reserve acted quickly to guarantee deposits at Silicon Valley Bank to prevent snowballing of runs on banks.
HSBC Holdings Plc bought SVB’s UK operations for a nominal £1 and will likely book a decent profit.
US and European banks holding government bonds may suffer unrealized losses, but won't suffer unless forced to sell the bonds.
Banks in Europe are subject to stricter liquidity rules than those in the US.
Credit Suisse Group AG, along with other weak banks, saw its stock take another pasting on Monday.