The collapse of California's Silicon Valley Bank is raising questions whether it was a unique problem, or a symptom of more to come.
is raising questions whether it was a unique problem, or a symptom of more to come. As the second-biggest bank failure in U.S. history, SVB's business was largely tied to lending for the tech industry. The experience is a cautionary tale of how small and regional banks move their money around to keep business going.Depositors waited in long lines, outside the bank's California branches, trying to save what they could after a weekend of worry that their money might be lost.
"They had a big portfolio of bonds that they had bought, previously, and as the Fed was aggressively hiking rates, last year, the value of those bonds fell," he says. "It's a function of a massive run on the bank, at one time," says Roberts, "People all wanting their money at one moment, and there not being enough collateral, there, to cover it."
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