The prospects remain unclear.
(Photo: IMAGO/Zoonar)
new York The bankruptcy of the Silicon Valley Bank (SVB) fueled fears of a risk of contagion on the financial markets. The US deposit insurance took control of the bank on Friday after massive deposit outflows in the previous days. The reason: The bank was looking for fresh equity because it had to write off larger bond holdings on the balance sheet. Bonds have lost significant value since the turnaround in interest rates.
Smaller banks in the US and Europe in particular could face similar problems. If customers felt their money was no longer safe there, they would withdraw it at record speed, warned Pershing Square hedge fund manager Bill Ackman.
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