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Special Report

Financial Markets: Banking Shock Response

March 2023

Bank Closures Could Sway Federal Reserve Decision,
Fast Government Response Alleviates Contagion Concerns

The collapse of Silicon Valley Bank and Signature Bank sent shock waves through capital markets, but agencies have been quick to counter it from spreading. Expectations for a smaller interest rate hike at the upcoming FOMC meeting has meanwhile been a byproduct of the recent events. The Fed will likely tread more cautiously despite persistent inflation and resilient employment.

Key Features Include:

  • Timeline of the events that led to SVB and Signature Bank shuttering
  • A breakdown of the backstops government agencies are using
  • Analysis of the Fed rate decision and what they are considering
  • Implications for commercial real estate investors and lenders
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