“Wall Street” is under pressure.. and “SVB” declares bankruptcy | Gulf newspaper

Banking stocks led Wall Street’s losses, led by First Republic, which fell by 32.8% and about 70% this week.
The local bank’s share recovered yesterday, following the announcement of a group of major banks to pump deposits worth $30 billion into First Republic.
However, the continued turmoil associated with the Swiss Credit Suisse Bank and the announcement of the “SVB” company that owns the Silicon Valley bank to file for bankruptcy contributed to the return of concern about the banking sector.
On the other hand, investors are waiting for the monetary policy meeting by the US Federal Reserve next week, amid expectations of a 25 basis point rate hike.
At the end of the session, the Dow Jones index fell by 1.2%, or the equivalent of 384 points, to record a weekly loss of 0.2%.
Standard & Poor’s also fell by 1.1%, but rose 1.4% this week.
Nasdaq recorded a decline of 0.7%, but it also achieved a gain of 4.4% this week.

And data from the US Federal Reserve showed that banks sought to obtain emergency liquidity in record amounts during the past few days, in the wake of the collapse of the “Silicon Valley” and “Signature” banks, which in turn led to the dissipation of efforts made by the central bank over months to reduce the size of his budget.
As of Wednesday, banks had received $152.9 billion, an unprecedentedly high amount, from the US central bank’s discount window, a traditional facility that acts as a last resort. It also obtained $11.9 billion in loans from the Fed’s recently introduced term bank lending program. Discount window borrowing surpassed the previous record of $112 billion in the fall of 2008, during the worst of the financial crisis.
The former parent company of Silicon Valley Bank filed for bankruptcy, after a week of depleting deposits prompted regulators to take over its banking unit.
SVB Financial Group listed financial assets and liabilities of up to $10 billion each in its New York state bankruptcy filing. The group did not include its brokerage arm, SVB Securities, and its venture capital arm, SVB Capital, in the bankruptcy filing.
Because Silicon Valley Bank was a commercial bank operating in California and part of the Federal Reserve system, it did not qualify for bankruptcy. However, the former parent company is eligible to file for bankruptcy in order to protect its remaining assets and work to pay off creditors, including bondholders. (agencies)