The collapse of Silicon Valley Bank (SVB) in the United States continues to spread, and global financial stocks are in mourning (Reuters)

SVB collapse storm Moody's downgraded Humi Bank's outlook from stable to negative

Shares of Credit Suisse, Switzerland's second-largest bank, tumbled 29 percent to their lowest on record on Wednesday after its largest shareholder, the National Bank of Saudi Arabia, refused to inject capital.

(Associated Press)

[Compile Lu Yongshan/Comprehensive Report] The collapse of Silicon Valley Bank (SVB) in the United States has not yet ended. Credit Suisse, the second largest bank in Switzerland, fell 29% on Wednesday because its largest shareholder, the National Bank of Saudi Arabia, refused to inject capital. % to a record low.

The three major European stock indexes fell all the way after the opening yesterday. By 9:40 last night Taipei time, the British FTSE index fell three.

One percent, the German DAX index fell three.

○5%, the French CAC index fell more than three.

67%; the three major U.S. stock indexes also opened lower, the Dow Jones Industrial Average fell more than 500 points at the opening, and then rebounded and fell nearly 400 points, a drop of one.

24%, Nasdaq fell ○.

75%, the S&P 500 index fell one.

Twenty-four percent.

Shares of Credit Suisse, the largest shareholder, tumble 29%, breaking a record

In addition, the credit rating agency Moody's lowered the credit outlook of the US banking system from stable to negative on Tuesday, citing the rapid deterioration of the banking industry's operating environment after the failure of banks such as SVB and the announcement of rescue measures by US regulators.

But State Street CEO Ron O'Hanley questioned Moody's move as a "terrible overreaction," while U.S. prosecutors and the Securities and Exchange Commission (SEC) said they had launched an investigation into SVB's collapse.

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State Street CEO: Moody's is terribly overreacting

Moody's said: "Following the outbreak of runs on SVB, Silvergate Bank and Signature Bank, and the collapse of SVB and Signature Bank, we have downgraded our credit outlook on the U.S. banking system to negative from stable. Reflecting the rapid deterioration of the operating environment".

Moody's said that although US regulators have taken special actions against the affected banks, other banks with unrealized losses and uninvested depositors may still face the risk of competition and loss of depositors, which will affect their financing, liquidity, and profitability. and capital households will have a negative impact.

O'Hanley countered that Moody's move to lower its outlook on the creditworthiness of the U.S. banking system was a "terrible overreaction," as regulators had acted to reassure markets after the failures of the three banks. I don’t think it helps that credit rating agencies treat the entire banking sector the same way, whether on the asset side or the liability side.”

White House: Banking system in better shape, depositors need confidence

The White House official said the situation at small regional banks such as First Republic would be closely watched after regulators took action to protect SVB and Mark Bank depositors, emphasizing that "the U.S. banking system is in a much better place than if no action had been taken, depositors." There should be confidence that their deposits will be protected."

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