Fallout from Silicon Valley Bank collapse ripples across the industry

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The startling collapse of Silicon Valley Bank and Signature Bank continued to ripple across the American economy even as the U.S. raced to stabilize the banking system. Here's what's happening.

What is the government doing?

The Fed and Treasury also launched a program that would advance capital for up to one year to any federally insured bank eligible to borrow from the central bank. The goal is to allow banks to cover deposit outflows without having to absorb loss on depreciated securities, according to Goldman Sachs analysts.

Still, some analysts think Republicans could look to make political hay out of the crisis, noting that the deep-blue states of California and New York were home to the two banks. The short answer is that SVB was unprepared for the Federal Reserve aggressively pushing up interest rates. , a disproportionate share of the company's capital was held in longer-duration investments, including mortgage securities and bonds.

By contrast, experts say that most regional lenders, as well as the biggest banks, have far more diversified deposit bases.The FDIC scrambled to find buyer for SVB after taking it over, but that effort appears to have failed. Treasury Secretary Janet Yellen told One reason that view might be right: The failures of Silicon Valley Bank, Signature and Silverlake appear chiefly a result of financial issues specific to each bank — exposure to interest interest rates at SVB and exposure to crypto industry losses at Signature and Silverlake — not systemic issues with America's banks.

 

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Obama wasn't president when the 2008 bailout happened. Isn't this supposed to be a news organization?

Correct your story or delete

Oh good lord CBS. I am not even an American and can fact check your sorry ass. Geezus

Alain Sherter is a lying MAGAt. Obama wasn't president in 2008.

Obama took office January 20, 2009. Correct your story.

Obama was President in 2008? Lol

Next up, why didn't Obama stop 9/11?

Whoever wrote this BULLSHIT should be fired ⤴️

Obama was not President in 2008. Correct your story!!

Obama wasn't President in 2008. He took office in January 2009. George Bush was President in 2008. This is embarrassing and there is no good reason for it.

Obama wasn't President then--look it up, and fix this please! Sheesh.

Do you have fact checkers? Maybe getting one would make you look less like a box of rocks

Who was president in 2008? It wasn't Barack Obama.

Obama wasn’t president in 2008, but I can’t say I’m surprised that CBS News blame the Black dude for things he didn’t do.

Bush administration.

Article incorrectly states Obama administration bailed out banks. TARP was signed by Bush.

ALL the banks are failing 🙄

Well, at least Oprah gets to keep her $590 million thanks to the US taxpayer.

Much like the architects of the 2008 financial collapse, the people responsible for this failure will never be held accountable. Justice is not blind.

I hope that Paypal is okay! 😅

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