Silicon Valley Bank, Silvergate and Signature all failed as a result of poor risk management and a subsequent bank run, gckaloudis argues, not because of crypto. Opinion for 'The Node' newsletter.
who own massive financial interests in many of the companies banked by SVB.
Adding more kindling to the SVB fire – Reuters reported over the weekend that credit rating agency Moody’s was preparing to downgrade SVB’s credit rating, which potentially drove SVB to manage risk like this. On the downgrade news,SVB subsequently sold $20 billion of bonds over a weekend, which generated a loss, and then aimed to fill that hole by raising equity capital. That equity raise failed and now SVB no longer exists.
Do note, though, that SVB is more dependent on Silicon Valley startups than it is on crypto companies. Now, on Sunday, we had Signature shut down by state regulators. Signature is viewed as another crypto-friendly bank as Silvergate was. We’ve seen
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
U.S. crypto firms seek Swiss banking partners amid banking meltdownU.S.-based crypto firms are trying to open Swiss bank accounts after the collapse of two U.S. crypto-focused banks made it harder for them to use lenders in the United States, but bankers said the Swiss firms may not take them.
Lire la suite »
How Silicon Valley Bank could precipitate a banking crisisPresident Biden is in danger of a catastrophic banking crisis, unless the U.S. government can orchestrate a deal to rescue Silicon Valley Bank depositors before branches open tomorrow.
Lire la suite »
The three options for preventing a national banking crisisThere are three primary ways to avoid a U.S. banking crisis tomorrow morning, all of which involve reassuring Silicon Valley Bank depositors that all of their money is secure and available.
Lire la suite »
Federal Reserve Rolls Out Emergency Measures to Prevent Banking CrisisBreaking: Federal regulators said all depositors of Silicon Valley Bank will get their money and said a second bank, Signature Bank, was closed
Lire la suite »
Biden says will address banking crisis on Monday morningU.S. President Joe Biden said on Sunday he would address the banking crisis Monday morning, as the federal government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of Silicon Valley Bank .
Lire la suite »
US government moves to stop potential banking crisisThe Treasury Department, Federal Reserve and FDIC said Sunday that all Silicon Valley Bank clients will be protected and have access to their funds and announced steps designed to protect the bank’s customers and prevent more bank runs.
Lire la suite »