The speed at which four collapsed banks the other, while still hesitating, provoked a strong reaction from investors. All this happened in just 11 days, but the reasons for the collapse of each bank or other development are different and completely unique in each case.

The collapse of the American regional bank gave the initial impetus to the crisis Silvergate Capital due to its great influence on the cryptocurrency industry. With the approval of the Federal Reserve System, the American Deposit Insurance Administration tried to intervene, which discussed with management how not to close the bank. But regulatory reviews and Justice Department investigations of fraud in some of Sam Bankman Freed’s and Alameda Research’s FTX deals have shown the bank is unable to bounce back. Ultimately, no one pleaded guilty, but on March 8, the bank announced a suspension of operations. Since the Silvergate epilogue had already been written, nervousness already reigned among investors. On March 8, when Silicon Valley, also a regional bank, announced a $2.25 billion share sale but also found losses in its portfolio, investors rushed to sell their shares. The next day, his stock fell 60%, and the day after, the bank collapsed. Since then, several banks have expressed interest in buying Silicon Valley, and it may even come under the control of First Citizens BankShares, which has repeatedly bought US banks after their failure.

Her collapse followed Signature bank, which is the third largest US bank failure. On March 12, the bank closed due to massive withdrawals by its panicked customers. Four days later, Silvergate collapsed despite much less influence from the crypto industry.

Regulators said they no longer trust the management of the company and decided to take control of it. They guaranteed the deposits of all but the bank’s customers, regardless of the amount, because the regulators referred to the provision regarding the “exclusion of systemic risk.” Signature Bank deposits and part of its loan portfolio came under the control of Flagstar Bank of New York Community Bankcorp. Flagstar Bank agreed to buy $13 billion in assets, including $25 billion in cash and about $13 billion in loans. He also took on $36 billion in bank liabilities.

The first impetus was the collapse of the American company Silvergate Capital due to its heavy dependence on the cryptocurrency industry.

And finally, Swiss giant Credit Suisse, which has now merged with Switzerland’s largest bank, UBS. The latter bought the former for $3.2 billion, brokered by the Swiss authorities, who were quick to prevent the crisis from spreading and escalating into a wider financial crisis. The only alternative considered was the partial nationalization of Credit Suisse. The 166-year-old bank collapsed after its chief executive, Urlich Kerner, tried to bail it out by appealing extensively to its clients, who have withdrawn unprecedented amounts over the past year. His efforts were not enough to cope with a series of scandals and, above all, with the multi-billion dollar losses incurred by Credit Suisse due to her exposure to the Archegos and Greenshill Toxic Foundation.

On March 9, the US Securities and Exchange Commission scrutinized the bank’s annual prospectus, forcing it to delay the publication of the relevant data.

The attitude of the US authorities caused panic, especially when combined with the unfortunate reaction of its largest shareholder, the National Bank of Saudi Arabia, which refused to provide the wintering bank with a new injection of capital.

And finally, First Republic, which has experienced the same massive withdrawals and capital loss as its three U.S. bonds, and an estimated outflow from its treasury has reached a staggering $89 billion. The US authorities tried to support the First Republic by injecting $30 billion in liquidity last week. The American bank JPMorgan Chase and its chief executive Jamie Daimo have developed a new plan to help the First Republic. The plan covers part or all of the deposits of 11 bank branches.