Wednesday, March 22, 2023

‘Somewhere an accident was waiting to happen’ – Usky News

Mumbai: Head of Uday Kotak Kotak Mahindra Bank, and one of the world’s richest bankers said that on the crisis Silicon Valley Bank (SVB) was “A” in the US Accident He was waiting to happen”. He said investors and analysts “underestimated the importance of the financial stability” of the bank’s balance sheet. “When interest rates go above zero to 500 basis points (100 basis points = 1 percentage point) in one year, a crash was waiting to happen,” Kotak tweeted on Friday.
White House economic adviser Bharat Ramamurthy said on Friday that the US Treasury Department is monitoring SVB Financial “very carefully” as the company’s shares declined. “I don’t want to say more than that right now, but I want to assure viewers that this is something we are on top of,” he told CNBC. “And your question is right – is this something that’s going to spill over into a more systemic issue,” he said.
In the US, Thursday was the worst day for the KBW Bank index since June 2020, as its members lost more than $80 billion in value. Europe’s top banks lost more than $40 billion in value on Friday.


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