A Wild Week in Finance: What Happened, And Where Do We Go From Here?
Three American banks (Silvergate Capital, Silicon Valley Bank, and Signature Bank) have failed so far. Another major US bank, First Republic Bank, is in danger after its share price dropped by more than 70% in a single week.
Even after receiving a US$30 billion rescue from its larger counterparts on Thursday in an effort to quell the turbulence, it's share price dropped 33% on Friday.
Experts believe that banking stocks would be under pressure as a result of the uncertainty.
On the other hand, Credit Suisse is having problems. It is one of only 30 global financial institutions that the global Financial Stability Board says are systemically important.
Several central bank governors, like Jerome Powell, chair of the Federal Reserve, and Christine Lagarde, president of the European Central Bank, have reassured the public that the recent volatility is not a sign of another financial crisis like the one in 2008.
Still, trust in the international financial system has been shaken, and things are happening quickly.
Credit Suisse is reportedly holding meetings to talk about possible outcomes.