Analysis: SVB's lightning collapse stuns banking industry

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The rapid unraveling of SVB Financial Group has blindsided the banking industry after years of stability.

to lock in funding costs due to expectations of higher rates, resulting in a loss of $1.8 billion. SVB, which did business as Silicon Valley Bank, also had 89% of its $175 billion in deposits uninsured as the end of 2022. The FDIC insures deposits up to $250,000.

"Banks are opaque, so immediately, we all go 'wait a minute, how interconnected is this bank to another one,'" said Mayra Rodríguez Valladares, a financial risk consultant who trains bankers and regulators. "Investors and depositors do not want to be the last ones turning out the lights in the room, so they have to leave."Several experts said any ripple effects in the rest of the banking sector may be limited.

Senator Elizabeth Warren, a prominent bank critic, tweeted that the bank's failure "underscores the need for strong rules to protect the financial system." Another requirement that could garner more attention, industry sources said, was expanding which banks are required to account for the market value of held securities. That requirement currently only applies to banks with over $250 billion in assets, but could grow to include other firms.

 

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Where is HindenburgRes now?

This bank lent billions to napa valley. California based bank , gov. Newsome has a napa winery. Let see the cozy relationship between newsome. Regulators and governor.

Terrible article, and I’m sure financial experts will be picking it apart.

Why?!! The whole system is a house of cards made of ious and corruption

let Silicon Valley experience what the rest of America has gone through for decades

The decline in bank stocks is just the beginning, and more and more stocks in other industries will follow suit

AFTER manmade 2008 crisis: GoldmanSachs CEO: 'Would I do something different knowing what I know now? How could I not?' SiliconValleyBank How can you NOT do something different, knowing what you now know? SenateFinance SenFinance FinancialCmte FSCDems

vankapro Then the banking industry is broken. Top people at the bank sold their s*** off within 2 weeks. That should have flagged somebody.

Bank CEOs: We Didn’t See Financial Crisis Coming Blankfein, GoldmanSachs: “We are not a fiduciary.” Mack, MorganStanley: “In retrospect, many firms...did not have sufficient resources to manage their risks effectively in a rapidly changing environment.”

Meanwhile private citizens continue to be aware of the money laundering that is going on behalf of the ruling class

Stuns? Why? That's what diversity, equality, and sexual orientation inclusion gets you

planned.

but I thought they just had some exposure to long term bonds that went down a little as interest rates are creeping up? 🙄

Planned

How incompetent were they? Instead of hiring lairs, proven failures, diversity, equity, gender inclusion they should've hired based on merit

surprised bc reg’s like doddfrank were shredded under Drump winning

Should it be stunned. That would be even more frightening.

Wake up! 🚀🚀🚀

Could that affect the regular banks? I don't think so

Another example of failed capitalism or will the government have to step in and save the day?

zaibatsu And the US taxpayer better not bail them out!!

Whoa 🚨Adult mis management will most certainly request Big Government support but don’t want Big Government to regulate their incompetence. This is ok with GOP YET! Any move to help student loan burdens they fight like the devil to block.

Forbes isn't shocked another company they promoted SVB as bank of the years failed...

Another realDonaldTrump gift for the ages. Wonder if he knows the way to San Jose?

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