{"id":562792,"date":"2023-03-12T21:12:59","date_gmt":"2023-03-12T18:12:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/u-s-authorities-preparing-material-action-to-curb-svb-contagion\/"},"modified":"2023-03-12T21:12:59","modified_gmt":"2023-03-12T18:12:59","slug":"u-s-authorities-preparing-material-action-to-curb-svb-contagion","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/u-s-authorities-preparing-material-action-to-curb-svb-contagion\/","title":{"rendered":"# U.S. authorities preparing &#8216;material action&#8217; to curb SVB contagion"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3521e6afaa7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3521e6afaa7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/u-s-authorities-preparing-material-action-to-curb-svb-contagion\/#%E2%80%9D_US_authorities_preparing_%E2%80%98material_action_to_curb_SVB_contagion_%E2%80%9C\" >&#8221; U.S. authorities preparing &#8216;material action&#8217; to curb SVB contagion  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_US_authorities_preparing_%E2%80%98material_action_to_curb_SVB_contagion_%E2%80%9C\"><\/span>&#8221; U.S. authorities preparing &#8216;material action&#8217; to curb SVB contagion  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvOGI4ZDgxM2EtN2IwMi00YWQ5LWFiZGMtZWRhYWM5NTcxYzVmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>United States authorities are working on &#8220;material action&#8221; over the weekend in an attempt to limit the ripple effect across the country&#8217;s banking system after the Silicon Valley Bank abruptly collapsed on March 10.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/finance\/regulators-urged-find-silicon-valley-bank-buyer-industry-frets-about-fallout-2023-03-12\/\">According<\/a> to a Reuters report citing unnamed sources, officials in the Joe Biden administration assessed the impact of the bank failure over the weekend with a keen attention to venture capital firms and regional banks. <\/p>\n<p>&#8220;This will be a material action, not just words,&#8221; a source told Reuters.<\/p>\n<p>During a speech on March 6, the Federal Deposit Insurance Corporation (FDIC) chairman Martin Gruenberg <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fdic.gov\/news\/speeches\/2023\/spmar0623.html\">spoke<\/a> about the risks related to raising interest rates in the United States.\u00a0&#8220;The current interest rate environment has had dramatic effects on the profitability and risk profile of banks\u2019 funding and investment strategies,&#8221; he noted before adding that:<\/p>\n<blockquote><p>&#8220;The total of these unrealized losses, including securities that are available for sale or held to maturity, was about $620 billion at year end 2022. Unrealized losses on securities have meaningfully reduced the reported equity capital of the banking industry.&#8221;<\/p><\/blockquote>\n<p>According to Gruenberg, the &#8220;good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>&#8221; about the billions of unrealized losses is that &#8220;banks are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly in a strong financial condition.&#8221;<\/p>\n<blockquote><p>&#8220;On the other hand, unrealized losses weaken a bank\u2019s future ability to meet unexpected liquidity needs. That is because the securities will generate less cash when sold than was originally anticipated, and because the sale often causes a reduction of regulatory capital&#8221;<\/p><\/blockquote>\n<p>According to Yellen, regulators are &#8220;very aware of the problems that depositors will have, many of them are small businesses that employ people across the country. And of course, this is a significant concern, and working with regulators to try to address these concerns.&#8221;<\/p>\n<p>A report from Bloomberg claims that the FDIC began auctioning the bank on March 11 night. According to reports, bids are open only for a few hours, before the process closes later this Sunday. <\/p>\n<p>SVB&#8217;s failure may affect regional banks across the United States, putting trillions of dollars at risk of a bank run, Cointelegraph previously reported. The U.S. Treasury Secretary Janet Yellen is working with regulators to address Silicon Valley Bank&#8217;s collapse and protect investors, but not considering a major bailout.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/u-s-authorities-preparing-material-action-to-curb-svb-contagion\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; U.S. authorities preparing &#8216;material action&#8217; to curb SVB contagion &#8220; United States authorities are working on &#8220;material action&#8221; over the weekend in an attempt to limit the ripple effect across the country&#8217;s banking system after the Silicon Valley Bank abruptly collapsed on March 10. According to a Reuters report citing unnamed sources, officials in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":562793,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/8b8d813a-7b02-4ad9-abdc-edaac9571c5f.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[71939,117,70934,33355,67874],"class_list":["post-562792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banks","tag-business","tag-regulation","tag-silicon-valley","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=562792"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/562793"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=562792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=562792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=562792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}