European authorities slam 'total and utter incompetence' of US regulators in handling SVB collapse

• European regulators have slammed the US response to SVB's collapse, per a FT report.
• One regulator called it a "joke," and another said it showed "total and utter incompetence."

European authorities have slammed US regulators for their handling of the Silicon Valley Bank collapse, according to the Financial Times.

In particular, they pointed to US guarantees on all SVB deposits, even those exceeding the typical $250,000 limit.

One European official was surprised at US regulators' "total and utter incompetence," adding that it came after a decade of "long and boring meetings" where the US pushed to end bank bailouts in global bank policy standards.

A former UK policymaker who played a role in creating the standards called the US response to SVB a "disaster." Another European regulator called it a "joke," blasting President Biden's claim that the handling of SVB's collapse would pose no cost on the taxpayer.

"At the end of the day, this is a bailout paid by the ordinary people, and it's a bailout of the rich venture capitalists, which is really wrong," the regulator told the FT.

Biden has emphasized that the response to SVB's collapse differed from the bailouts of big banks that roiled markets in 2008, as SVB's investors aren't protected and are on the line for losing their cash.

Other Wall Street commentators have voiced their support, with Nobel economist Paul Krugman calling the rescue of depositors sensible, though frustrating.

Silicon Valley Bank has roiled markets since collapsing and being seized by the FDIC last Friday. Regional bank stocks suffered a steep-sell off on Monday, though some experts say the risk of contagion from SVB's collapse is low, given the unique problems of the bank.