Decisions taken by SVB itself on poor advice led to panic withdrawal of deposits
The demise of Silicon Valley Bank , the 15th largest US bank with an important systemic role in the rollout of US tech, happened quickly. In less than 24 hours it was all over for shareholders as regulators took over to prevent banking contagion by offering insurance not only on the deposits of all denominations at SVB, but in effect on all deposits with US banks should it be needed.
This was not a run on the banking system per se — depositors were not lining up to cash out their deposits as they might have done in the primitive past. Ordinary clients acted online, transferring their funds as quickly as they could to banking behemoths such as JPMorgan, much as venture capitalists and their many subsidiary companies had already done with their deposits with SVB...
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Q&A: What does the collapse of Silicon Valley Bank and Credit Suisse mean for SA?James Turp of Sanlam looks at the ways in which SA can deal with the financial instability
Read more »
Yellen says banking stabilising, US may intervene more if neededThe US banking sector is 'stabilising' after the recent failures of Silicon Valley Bank and Signature Bank rattled the industry.
Read more »
Business Maverick: EU Regulators to Rethink Liquidity After Credit Suisse UnravelsThe rapidly unfolding crises of confidence at Credit Suisse Group AG and Silicon Valley Bank are prompting some regulators gathered at the European Central Bank to rethink their treatment of liquidity risk.
Read more »
ANALYSIS | Social media-driven bank runs burden regulators with a bigger problemSome in the banking industry are playing down the risks of another Silicone Valley Bank-style downfall.
Read more »
Level 5 weather warning: Severe thunderstorms in parts of the CapeThe SA Weather Service (SAWS) issued a level 5 weather warning, alerting to heavy rain and thunderstorms in western parts of the Western Cape today. The areas most affected will be the Breede Valley, Stellenbosch, Langeberg and Drakenstein.
Read more »
WEBINAR | How ESG additionality can drive socioeconomic developmentSPONSORED | Register for the virtual sanlam ESG Barometer Conference on March 23 to find out how local companies can attract global investors on the grounds of additionality rather than status quo ESG features. ArenaEventsZA
Read more »