TIMELINE-How the 2023 banking crisis unfolded

Reuters2023-03-25

March 24 (Reuters) -

Global banks are staring at the biggest crisis since 2008 after two U.S. lenders collapsed, Switzerland's Credit Suisse

sought a government lifeline and America's top banks agreed to offer a $30 billion rescue deal - all in the space of 10 days.

The turmoil has ratcheted up fears of a contagion and prompted action from the U.S. Federal Reserve, U.S. Treasury and the private sector, but it remains to be seen whether that will be enough to contain the damage.

Below is a timeline of key events:

Date Development

March 8 Silicon Valley Bank (SVB) says it intends to raise

$2.25 billion in common equity and preferred

convertible stock.

March 9 The S&P 500 bank index tumbles following

SVB's announcement and crypto bank Silvergate's

decision to wind down operations. SVB stock

collapses by 60%, leading the company to scramble

to reassure its clients their money was safe.

March 10 A California regulator shuts SVB and appoints the

Federal Deposit Insurance Corporation (FDIC) as

receiver. U.S. bank stocks extend losses with

regional lenders hit the hardest.

U.S. lenders $First Republic Bank(FRC-N)$ and

Western Alliance say their liquidity and

deposits remained strong, aiming to calm investors

worried of a spill-over.

SVB CEO Greg Becker leaves the board of directors

at the Federal Reserve Bank of San Francisco.

U.S. Treasury Secretary Janet Yellen meets with

banking regulators on the collapse of SVB.

March 11 The U.S. Federal Reserve and the FDIC weigh the

creation of a fund that would allow regulators to

backstop more deposits at banks, Bloomberg News

reported.

March 12 Yellen says she is working closely with banking

regulators to respond to the SVB collapse. U.S.

officials later say SVB customers will have access

to their deposits.

New York state's Department of Financial Services

takes possession of New York-based Signature Bank.

March 13 HSBC acquires the UK subsidiary of

Silicon Valley Bank for 1 pound.

The FDIC says it has transferred all deposits of

SVB to a newly created bridge bank.

U.S. President Joe Biden says the administration's

actions should give Americans confidence that the

banking system is safe.

Western Alliance Bancorp says more than 50% of its

total deposits were insured and it has over $25

billion of cash reserves. Shares of U.S. regional

banks slump, led by First Republic , while

credit risk indicators flash red as investors

worry about contagion risks.

U.S. Federal Home Loan Banks beef up their lending

warchests to provide more liquidity to banks amid

continued higher-than-usual demand for funds.

March 14 Moody's Investors Service revises its outlook on

the U.S. banking system to "negative" from

"stable", citing heightened risks.

U.S. prosecutors investigate the collapse of SVB,

a source familiar with the matter told Reuters.

March 15 Troubled Swiss giant Credit Suisse says

it will strengthen its liquidity by borrowing from

the Swiss National Bank up to 50 billion Swiss

francs ($54 billion).

March 16 Yellen tells a U.S. Senate hearing that uninsured

deposits would only be guaranteed in banks deemed

a contagion threat, raising fears about smaller

banks.

Large U.S. banks inject $30 billion in deposits

into First Republic Bank to shore up the

lender's finances.

March 17 SVB Financial Group files for Chapter 11

bankruptcy protection.

March 18 UBS is examining a takeover of Credit Suisse that

could see the Swiss government offer a guarantee

against the risks involved, say two people with

knowledge of the matter.

March 19 UBS agrees to buy Credit Suisse

for 3 billion Swiss francs in stock and agrees to

assume up to 5 billion francs in losses.

March 20 The FDIC decides to break up SVB and hold two

separate auctions for its traditional deposits

unit and its private bank after failing to find a

buyer for the lender.

March 21 U.S. Treasury Secretary Janet Yellen tells bankers

that she is prepared to intervene to protect

depositors in smaller U.S. banks.

March 22 Yellen tells lawmakers that she has not considered

or discussed "blanket insurance" to U.S. banking

deposits without approval by Congress, again

stirring up investor worry. Federal Reserve Chair

Jerome Powell says SVB's failure is not indicative

of wider weaknesses in the banking system.

March 24 Deutsche Bank shares drop 8.4% in Europe and the

cost of insuring the company's bonds against the

risk of default spike. Other banking stocks also

slump in Europe.

Sources: company statements, press conferences, sources, media reports

(Reporting by Mehnaz Yasmin amd Manya Saini in Bengaluru; Editing by Devika Syamnath)

((Manya.Saini@thomsonreuters.com;))

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