For the time being, American banks survived a run by depositors
But the crisis is far from over
Despite previous claims by the Biden administration
America's banking system is safe
American media report
The 186 US banks can no longer afford a run
And the White House has teamed up with Buffett
Many rounds of dialogue took place
Hope Buffett bailed out American banks
Silicon Valley bank failure
And Credit Suisse, which was already in crisis
More precarious
The Swiss National Bank injected about $54 billion in emergency funds
Can keep the dominoes from falling
buffett is not only a well respected investor
but he's been regarded as a savior of ailing banks in the past
and according to people familiar with the matter
there have been multiple calls
between the billionaire
and the Biden White House senior advisors in recent days
specifically about potentially
investing in the us regional banking sector
we also know that buffett is given some of his views
and broader guidance about the current banking crisis
Dr Peng reported
Afternoon of 17th
There are more than 20 special planes
Batch by batch
Phoebe Buffett's home state of Nebraska
The Berkshire Hathaway headquarters in Omaha
The planes are from New York
Areas at risk of mines like Los Angeles
The city where the bank is headquartered
And from Washington
And the European country of Switzerland
Some planes even land at the same time
Making this small city of just 390,000 people very lively
U.S. media reported
It was a busy day for Buffett
Hourly with different banks or departments
A meeting
By early 2023, according to financial data
Berkshire Hathaway has a huge amount of cash on its books
$128 billion
Set an all-time high
And so many banks or institutions are rushing to the door
It's because Buffett was in the midst of the 2008 financial crisis
Have come to the rescue
After the collapse of Lehman Brothers, America's fourth-largest investment bank
Buffett used to buy preferred stock
It was injected with $5 billion by Goldman Sachs, which needed cash
Avoid the latter's failure to create a greater risk
In 2011
Bank of America suffered subprime and mortgage-related losses
After the plunge also received Buffett's capital injection
Buffett has also been rewarded handily after the crisis
$12 billion in profit
Up to now
The U.S. government and Warren Buffett
In response to the players' ceremony
But America's financial industry has blown up
The market thinks
This shows the current US financial system
It's not as safe as the media makes it out to be
Americans can have confidence that the banking system is safe
Last week Silicon Valley Bank
And Mark banks collapsed in three days
External concern
The first total and the bank
Will be the next domino to fall
To keep it from going out of business
Eleven big Wall Street banks joined forces Thursday
To the first bank of China
$30 billion in liquidity support
But there's still a lot of panic in the market and shares fell 33% on Friday
It has fallen about 72% in a week
Us regulators confirmed
There was a run on deposits at about 20 CITIC banks
Economists at prestigious universities like Stanford
According to a newly released report
It is calculated that half of the deposits are withdrawn
186 U.S. banks are in danger of failing
i think this is more of a bare Sterns moment well
i think fear is sitting in fear not rationality
and i think that the problem was that
they did bailouts of these two
mid size banks very tiny parts of the overall system
in the name a systemic risk
and that
created a lot of uncertainty that they may need to do more
bailouts not less through the system if it's systemic
then provide a blanken guarantee temporarily
In March 2008
The Fed mistakenly underestimated the fifth-largest investment bank
Liquidity risk at Bear Stearns
The situation eventually spiraled out of control
Trigger subprime aircraft
It became known as the Bear Stearns moment
U.S. Treasury Secretary Janet Yellen has also said
If the crisis spreads further
That could lead to the closure of many banks and a run on them
we certainly need to analyze carefully
what happened that triggered these bank failures
felt that there was a serious risk of contagion
that could have brought down and triggered runs on many banks
The stock market effect of successive bank failures in the United States
Spread to Europe
The world's fifth largest financial group under financial stress
Credit Suisse, Switzerland's second largest bank
In the majority shareholder Saudi National Bank
With the news that they're refusing to refinance
The stock plunged 27% to a record low
Faced with endangered prohibited sites
Saudi National Bank said
Has lost $1 billion on Luckin
The Swiss National Bank came under pressure to rescue Luckin
50 billion Swiss francs to the latter
About $54 billion in life-saving money
Connect it to the account
Luckin shares briefly rebounded
But outsiders remain pessimistic about the century-old store
Ability to recover
Analysis suggests the money failed to stop Luckin's bleeding
And Silicon Valley Bank's main business is deposit and issuance
Different loans
Luckin dabbles in the highly risky business of investment banking
The ripple effects will be even more dramatic
To avoid the example of Lehman Brothers in the US
On March 19th the Swiss federal government announced
Credit Suisse is to be taken over by UBS
The total transaction consideration is approximately $3.2 billion
But at Luckin's closing price on Friday
This is less than 40% of the price
The Swiss government also backed the deal
It represents potential losses from UBS's takeover of Credit Suisse's assets
Nearly $10 billion in guarantees
The Swiss National Bank will provide it to UBS
About $107.8 billion in liquidity assistance
According to the Wall Street Journal
The deal involves two pillars of the Swiss financial industry
Since the 2008 financial crisis
Have a system
The first deal between significant international banks
Mega-merger deal
The collapse of Silicon Valley banks triggered the Credit Suisse crisis
It has also put major advanced economies on edge
The Federal Reserve joined the Bank of Canada on March 19th
Bank of England Bank of Japan European Central Bank
The Swiss National Bank said in a joint statement
Will be under a standing dollar liquidity swap agreement
Increase liquidity supply
This mechanism was in place during the 2008 financial crisis
First start
It was upgraded to a permanent agreement in 2013
According to the agreement
When other central banks face a shortage of dollars
You can exchange your local currency for dollars with the Fed
And agree to exchange at the same rate in the future
And it pays some interest
Economists generally
Blame the US banking crisis on the Federal Reserve
A frenzied interest rate hike to fight inflation
However, the Financial Times reported on the 19th
Although the Fed
Dealing with the collapse of Silicon Valley Bank
The crisis in the banking sector
But there is still a lot of work to be done to curb the flow
The Federal Reserve will continue to raise its benchmark policy rate