recent bankruptcy of the US Silicon Valley bank, which shook global financial markets, this time the parent company has filed for bankruptcy protection. It's been a week since Silicon Valley banks shut down in the wake of mass withdrawals. Shares of other U.S. banks, which seemed to be calming, have also fallen significantly, renewing market jitters.
Yoon-so Kim is a correspondent in Washington.
SVB Financial Group, the parent company of the bankrupt Silicon Valley Bank of the United States, filed for bankruptcy protection under the U.S. District Court for the Southern District of New York on Jan. 10.
It's only been a week since Silicon Valley Bank closed.
SVB Financial Group had assets of KRW 272 trillion and four subsidiaries, including Silicon Valley Bank and securities firms.
After the bank's bankruptcy, the crisis grew, with stock trading suspended, and the decision was made to protect the bankruptcy.
It is the largest since Washington Mutual, which also filed for bankruptcy protection during the 4 financial crisis when its subsidiary bank collapsed.
Anxiety about banks, which had been hoping to calm down, is also spreading again.
Shares of First Republic Bank, which had rebounded on the transfusion of funds from large banks, plunged again.
[Ken Rogoff/Former IMF Chief Economist: There's still a lot of anxiety. Financial crises tend to come in waves, and we've only seen the first wave.]
Confusion is growing as there are calls for the Fed to freeze interest rates next week to calm the banking crisis, but there is mixed opinion that doing so would fuel anxiety.
[George Ball/Investment Firm Representative: The Fed should not change its plans and make rate decisions as scheduled, otherwise fear that the banking system could collapse will spread.]
President Biden issued a statement urging Congress to strengthen legislation, saying executives at bankrupt banks should never be allowed to do banking again.
(Video Interview: Oh Jeong-sik, Video Editing: Jung Seong-hoon)
SVB parent company also filed for 'bankruptcy protection'... Reigniting the banking crisis theory
Following the recent bankruptcy of Silicon Valley Bank in the United States, which shook global financial markets, this time the parent company has filed for bankruptcy protection. It's been a week since Silicon Valley banks shut down in the wake of mass withdrawals.