After the sudden bankruptcy of Silicon Valley banks on March 10th, foreign governments adopted "practical behavior" on Sunday, trying to limit a comprehensive chain reaction to foreign banks as a whole.

Ministers in Joe Biden's government assessed the dangers of bank failures on Sunday and paid close attention to venture capital firms and regional banks, according to the Associated Press, citing unnamed sources.

"it will be a substantive act, not just rhetoric," a source told a Reuters representative. "

In a speech on March 6th, George Glenn Herbert, the boss of the Federal Deposit Insurance Corporation, mentioned the risks associated with raising interest rates by the dollar. He stressed: "at this stage, interest rates have a far-reaching impact on the operational capacity and risk situation of bank financing and investment strategies." He added:

By the end of 2022, the total amount of such outstanding losses was about $620 billion, mainly securities available for sale or held to maturity. Outstanding losses in securities have greatly reduced the cost of equity capital in banking reports.

According to Gruenberg, the "good news" for multibillion-dollar outstanding losses is that "banks are widely operating strongly".

On the other hand, outstanding losses reduce the level of unexpected liquidity market demand for banks in the future. This is mainly because the sale of such securities generates as much cash as possible than originally expected, and the sale often leads to a reduction in regulatory capital.

Cointelegraph has previously reported that the collapse of Silicon Valley banks will seriously affect regional banks in the United States, leaving trillions of dollars at risk of bank crowding out. Us Treasury Secretary Emily Yellen is working with regulators to deal with the bankruptcy of Silicon Valley banks and defend investors, but Yellen is reportedly not considering a bailout.

According to Ms Yellen, regulators are "well aware of the difficulties that depositors will face, many of them small and medium-sized enterprises that employ workers from all over the country. Naturally, this is an important concern and is working with regulators to try to address them.

FDIC gradually began trading with the bank on March 11, Bloomberg News reported. It is reported that the auction will only be open for a few hours before the auction ends on March 12.