The Tragic Financial Fallout of Silicon Valley’s Collapse: $500 Billion Lost
The market value of financial companies around the world fell by $ 465 billion in two days of trading after the bankruptcy of the US bank Silicon Valley, Bloomberg reports.
According to the agency, this is the sum of the decrease in the market value of all companies included in the MSCI World Financials and MSCI EM Financials indices.
And the market value of financial institutions continued to decline today, Tuesday, as the MSCI Asia Pacific Index in Asian markets fell 2.7% to its lowest level since November 29, 2022.
Mitsubishi Group’s share in Japan fell 8.3%, Hana Financial Group’s share in South Korea fell 4.7%, and Australia’s ANZ Group Holding (ANZ) shares fell 2.8%.
Before that, the American magazine Newsweek reported that pension funds around the world lost “millions of dollars” as a result of the collapse of the Silicon Valley bank.
According to the magazine, funds such as the California Public Employees’ Retirement Fund, the California State Teachers’ Retirement Fund, the South Korean National Pension Service, and the Swedish Pension Fund invested in the failing bank.
On March 10, Silicon Valley Bank filed for bankruptcy, with the bank ranking sixteenth in the ranking of US banks in terms of assets, and the bank focuses on emerging companies, and this bankruptcy is the largest since the 2008 crisis and the second largest bankruptcy in US history after Washington Mutual”.
After that, the US authorities decided to close Signature Bank due to regulatory risks, and US President Joe Biden promised to expel the management of bankrupt banks and hold them accountable, as well as tighten supervisory and regulatory measures in the banking sector.
Source: Bloomberg + News
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