Silicon Valley Bank collapse: What you need to know now

Without giving specifics, he also said he wanted to hear from both the banks and regulators. * The Wall Street Journal reported that SVB's collapse was being investigated by the U.S. Department of Justice and the Securities and Exchange Commission, citing people familiar with the matter.

U.S. bank stocks jumped on Tuesday, recovering some ground after the failure of Silicon Valley Bank and Signature Bank triggered heavy selling by investors who were already anxious about the impact on lenders of rising interest rates. DEVELOPMENTS

* Ratings agency Moody's cut its outlook on the U.S. banking system to negative from stable "to reflect the rapid deterioration in the operating environment." * The Republican chairman of the House Financial Services Committee urged confidence in the U.S. banking system and said the Federal Reserve and regulator FDIC had "acted swiftly and boldly" within the law. Without giving specifics, he also said he wanted to hear from both the banks and regulators.

* The Wall Street Journal reported that SVB's collapse was being investigated by the U.S. Department of Justice and the Securities and Exchange Commission, citing people familiar with the matter. The SEC and a spokesperson for the Justice Department in Washington declined to comment. SVB did not immediately respond to a request for comment.

* Apollo Global Management Inc, Blackstone Inc and KKR & Co Inc have expressed interest in a book of loans held by SVB, Bloomberg News reported, citing people familiar with the matter. * Democratic U.S. Senator Elizabeth Warren called on Federal Reserve Chair Jerome Powell to recuse himself from an internal review of recent bank failures, saying his actions "directly contributed" to them.

* Chancellor Olaf Scholz said Germans should not have major concerns and that regulators had learned lessons from the global financial crisis in 2008. MARKETS

* U.S. regional bank shares bounced, with First Republic Bank up 42.3% at $44.40 a share, a day after touching a record low of $17.53. The big Wall St banks were also higher. * Global shares turned higher, ending a five-session rout, as U.S. inflation data bolstered bets on a smaller interest rate hike by the Federal Reserve next week.

* U.S. Treasury yields moderately extended gains. * Europe's banking index ended up 2.7% after posting its biggest percentage loss in over a year on Monday.

* Euro zone government bond yields rose as investors reckoned repricing of the European Central Bank's tightening path in recent days might have been overdone. * Markets now see a 75% chance the ECB will hike rates by 50 bps on Thursday as it has previously indicated. On Monday a 25 basis-point hike was briefly the most likely outcome.

* The ECB's deposit rate is seen peaking at around 3.65% . QUOTES

* "This is part of the process of the knob being turned to tighten financial conditions to make sure that we are on our way to normalising a higher interest rate world," Morgan Stanley co-president Edward Pick said on Tuesday. "But there might well be surprises, there might well be reactions." (Compiled by Catherine Evans and Nick Zieminski Editing by Matthew Lewis)