Yes same. Well, the Fed has stepped in to be fair, but they will likely need government money to actually provide liquidity. Always the issue with the US that unlike the U.K., approving any finance deal has a lot of parties to contend with (imagine it would have to go through Congress ), who are slow and incredibly difficult.
Some US firms are already selling their deposits to investors for 70c on the dollar apparently (probably a mistake at this stage; but it shows the desperation). Looks likely the U.K. gov will step in on the U.K. side somehow, far less likely to happen in the US at this point. Troubling times.
Thatās a bit of a stretch if thatās what they said, as apparently Wise bank[s/ed] with SVB UK. Wise arenāt a bank, but they are certainly a āfinancial institutionā. There were likely other UK non-bank fintech companies as well. I assume the HSBC takeover of SVB UK means theyāre no longer at risk of losing their money though.
It hurts taxpayers if the bank collapses and isnāt rescued somehow though. Taxpayers will be left with salary bills of companies that go bust and lose the tax revenues from them.
Compared to some sort of bailout (which can often be at no cost or very limited cost to the taxpayer), seems a no brainier to manage it out of a collapse to me.