A silhouetted security guard talks on a telephone inside Silicon Valley Bank’s headquarters in Santa Clara, California on March 10, 2023. InternationalIndiaAfricaBeing updatedOn March 10, Council of Economic Advisers Chair Cecilia Rouse told reporters that US Treasury Secretary Janet Yellen was closely monitoring the situation concerning the Silicon Valley Bank (SVB) after it collapsed earlier that day. The future of First Republic Bank – the 14th largest in the United States – has triggered concerns amid speculations of a “domino effect” in the wake of Friday’s bankruptcy of Silicon Valley Bank, media reported.Specializing in supporting tech businesses, Silicon Valley Bank failed on March 10, and was taken into government control. Regulators marched in to seized its deposits, putting the brakes on the bank’s 40-year stint. The bank’s swift demise appears to have rattled other banks, with shares of First Republic sinking 50 percent the same day, according to media reports. Before the close of trading Friday, the drop was at 15 percent.To allay fears, First Republic issued a statement on Saturday, cited widely by media outlets, assuring investors of “continued safety and stability and strong capital and liquidity positions.”Amid the “bank panic”, Us Treasury Secretary Janet Yellen, who had rushed to meet with banking regulators, offered reassurances to the public, saying the American banking system remains “resilient”. Yellensaid she had “full confidence in banking regulators to take appropriate actions in response.””Our Treasury Secretary Yellen is closely tracking the developments with Silicon Valley Bank. We have every faith in our regulators,” Council of Economic Advisers Chair Cecilia Rouse told reporters on Friday.
Domino Effect Feared After Collapse of Silicon Valley Bank, as First Republic Bank’s Shares Slump
