[AP/뉴시스] Depositors wait in front of the Massachusetts branch of SVB Bank, where unlimited withdrawals were allowed by the authorities on the 13th.
[서울=뉴시스] Reporter Kim Jae-young = The U.S. fiscal and financial authorities took measures to thoroughly protect depositors of Silicon Valley Bank (SVB), which went bankrupt, to the point of moral hazard.
Six of the stocks that plunged the most in trading two hours before the start of the regular market were regional banks. In particular, shares of First Republic Bank, which has been marked as the most likely to suspend operations and close down after SVB and Signature Bank, plunged about 70% on Sunday the previous day despite promises of financial support from the US Federal Reserve and the largest bank, JPMorgan Chase.
Banks and other financial stocks lost more than 100 billion dollars in the U.S. between Thursday, the 9th, when signs of the SVB collapse surfaced, and the day before the regular market. The collapse of banking stocks is expected because the measures quickly put forward by the US Treasury Department, the Federal Reserve Bank and the Federal Deposit Insurance Corporation (FDIC) are limited to protecting depositors to prevent bank runs in the event of deposit withdrawals, and are not bailout measures to protect shareholders and creditors of bankrupt banks. can also be said to have been
On the 13th, when unlimited deposit withdrawals by problematic banks began, there was no signal that a bank run would be produced at any bank, and there was no sharp decline in stock prices other than bank stocks, so the S&P 500 futures index maintained a stable range of fluctuations. The stocks and bonds of bankrupt banks, with government authorities in charge of assets and seeking buyers, have come to rest.
On the other hand, California’s SVB deposit assets of $200 billion and New York’s signature deposit assets of $100 billion were broken by the authority of the withdrawal guarantee limit of $250,000 and allowed to be withdrawn in full without limit.
Wall Street stocks showed a rather slight upward trend overall, despite the collapse of banking stocks before the regular market. However, before the open, S&P 500 futures recorded minus 1%, a significant improvement from the weekend’s plunge prior to bold preemptive action by authorities.
Meanwhile, gold and US Treasury bonds, which are safer investments than stocks, saw their prices rise as investors flocked to them. The yield on the 10-year Treasury note (interest to maturity), which moves inversely to the purchase price, fell to 3.421% from 3.694% on Friday, with more people buying. Investors subtract this yield to buy Treasury bonds.
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