The effect after the collapse of the SVB causes the FED to intervene in the market
The Dow Jones closed this Monday, the 13th, in the first session after California regulators intervened in the Silicon Valley bank last Friday, the 10th, that all account holders would receive their money, the DJI index closed with 0.28%.
On the other hand, the Nasdaq closed down 0.45% against Friday’s trading session.
The biggest decliners were in banks such as JP Morgan, which retreated 1.8% to close at US$131.25 a share. But the decline was sharper in regional banks, such as First Republic Bank: a 61% drop, with the paper’s value falling to US$31.21 as the market fears about its financial health.
In Brazil, Ibovespa closed with 0.48% as a result of concerns about the decline of investments from the United States. Among the biggest decliners in the Brazilian trading session are: São Martinho, which closed at R$25.62, down 5.81%; Positivo, which fell 5.54% and ended the day at R$6.82; and Méliuz, which fell by 5.10%, with the share price at R$0.93.
The American regulator decided to intervene in Silicon Valley last Sunday, the 12th, to allow all account holders to withdraw their values from the bank. The move also covers customers of Signature Bank, which is focused on the cryptocurrency market and needed intervention over the weekend.
In a joint note, the Fed, the Treasury Department and the Federal Deposit Insurance Corporation said they had created a $25 billion fund to eventually support troubled financial institutions.
According to the three institutions, the reasons for offering this fund are: the risk of systematic spread in the financial market, the preservation of liquidity and the fact that the values of many of the account holders are greater than the 250,000 USD guaranteed by American Law.. The amount comes from the Exchange Stabilization Fund and is valid for one year.