What happened
The stock of next-generation bank and financial services company Nu Holdings (NU 3.19%) got some new momentum on Monday. It did so by distancing itself as much as possible from the current U.S. banking failure; as a result, its share price got a 0.7% boost on the day, favorably contrasting with the slight (0.2%) slide of the S&P 500 index.
So what
In a very brief regulatory document filed with the Securities and Exchange Commission (SEC) on Saturday, Nu Holdings wrote that it "hereby informs its shareholders and the market that neither the company nor any of its subsidiaries have any exposure to Silicon Valley Bank."
Silicon Valley Bank, the core business of SVB Financial, is of course the latest high-profile banking sector meltdown. The bank collapsed last week, and its operations were effectively taken over by the Federal Deposit Insurance Corporation (FDIC), the government agency charged with protectiing bank depositors.
Although investor panic was evident in the middle tiers of the banking sector on Monday, it seemed the FDIC's quick action (plus a similar move just afterwards on Signature Bank) is helping to calm nerves.
Like the U.S. federal authorities, the management of Brazil-based Nu Holdings is to be commended for staying on top of the story, so to speak. It barely hesitated to get that reassuring note filed with the regulator and was rewarded with the share-price uptick on Monday.
Now what
What also helps is that Nu Holdings, with its tight focus on the Brazilian market, is quite some distance away from the U.S. and its banking sector ups and downs. At least for now, it doesn't seem to be at risk from any more shocks within our borders.
