- The Fed is trying to prevent bank runs in the US by guaranteeing customer deposits at SVB respectively all other banks.
- It will also lend to banks to secure customer deposits against government bonds or other securities.
- Sectors to suffer most are technology, private equity and real estate.
- Markets will remain volatile and flight to quality continues.
- Actually we don’t expect a spill over effect in the financial industry.
Read more in the News Flash by Peter von Elten.