FT News Briefing Wall Street banks rescue First Republic
Mar 17, 2023
Major U.S. banks have united to pump $30 billion into First Republic Bank, a bold move amid financial turbulence. The European Central Bank has hiked interest rates by half a percentage point, stirring further economic tension. Meanwhile, in France, President Macron has opted to bypass lawmakers to implement contentious pension reforms, igniting public protests and political instability. The podcast also examines HSBC's strategic acquisition of Silicon Valley Bank UK's assets, highlighting the banking sector's changing landscape.
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First Republic Bank Rescue
- First Republic Bank received a $30 billion cash deposit from 11 major US banks.
- This aimed to stabilize First Republic after depositor withdrawals following Silicon Valley Bank's collapse.
ECB Raises Rates
- Despite the banking turmoil, the European Central Bank (ECB) raised interest rates by half a percentage point.
- The ECB's decision was influenced by the Swiss central bank's support for Credit Suisse.
HSBC's Acquisition of SVB UK
- HSBC acquired Silicon Valley Bank UK for a nominal fee of £1.
- This was a surprising move, given HSBC's traditional focus and SVB UK's tech and crypto client base.