Silicon Valley Bank

Regional bank stocks rebounded Tuesday morning after being pummelled in a Monday selloff that was fuelled by a mix of contagion fears and a pile-on of short-sellers who profit when stocks lose value, CNN reported. Even after the federal government's intervention on Sunday to backstop deposits in two failed lenders, Silicon Valley Bank and Signature Bank, Wall Street had remained wary of smaller and midsize banks that are seen as having similar risks.

Japan's Nikkei 225 tumbled 2.19 per cent to post its third straight day of declines. Hong Kong's Hang Seng briefly dropped 2.5 per cent, before trimming losses in the afternoon. Korea's Kospi lost almost 3 per cent. China's Shanghai Composite shed 0.65 per cent, CNN reported. Banks were the hardest hit sector across the region, CNN reported.

Chandrasekhar discussed key issues related to the collapse of the Silicon Valley Bank (SVB) with startups and shared how the PM Modi government is "laser focused on ensuring that every startup navigates through this storm". "The Indian banking system is trusted and robust and startups must start using it," Chandrasekhar told them.

However, shares in the US and European banks sold off sharply amid a crisis of confidence in global markets over the health of the financial system. Government bond prices soared as investors rushed for safe-haven assets, while economists suggested the febrile conditions in global markets could force the world's most powerful central banks to stop raising interest rates.

SVB, previously the 16th largest bank in the US that had been operational for 40 years, collapsed last week. The BaFin "has issued a ban today for Silicon Valley Bank Germany Branch on disposals and payments, as the institution is at risk of being unable to meet its obligations towards its creditors," it said in a statement on Monday.

"This acquisition makes excellent strategic sense for our business in the UK," HSBC Group Chief Executive Officer Noel Quinn said in a statement on Monday, adding that SVB UK customers "can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC".

News of the worrying shortfall came amid the closure of Silicon Valley bank- the largest collapse since Washington Mutual in 2008, the Daily Mail reported. As the government scrambles to prevent contagion, the Federal Reserve announced on Sunday night that all depositors would get their money back.

Ackman, whose hedge fund Pershing Square Capital Management oversees roughly $16 billion in assets, criticized the government's response on Saturday as he predicted "economic meltdown" within hours of the banks opening on Monday morning. Ackman, who had urged the U.S. government to step in and protect all of the bank's depositors, praised the move but warned it unlikely to prevent more financial institutions from collapsing, Daily Mail reported.

In a statement, HSBC says the transaction "completes immediately". The acquisition will be funded from existing resources, the Guardian reported. As at 10 March 2023, SVB UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds. For the financial year ending December 31, 2022, SVB UK recorded a profit before tax of 88 million pounds.

Khosla said he is offering personal loans at borrowing cost to companies in the Khosla Ventures portfolio. "We are talking to 100+ portfolio companies assessing their critical needs and plan to bridge where we are a lead or major investor at our cost of borrowing only or under special circumstances where a company's other investors.