Silicon Valley Bank collapsed after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history. 9News
What happened?
Higher rates hit tech especially hard, undercutting the value of tech stocks and making it tough to raise funds, Moody's chief economist Mark Zandi said. That prompted many tech firms to draw down the deposits they held at SVB to fund their operations. But smaller banks that are disproportionately tied to cash-strapped industries like tech and crypto may be in for a rough ride, according to Ed Moya, senior market analyst at Oanda.
Several other bank stocks were temporarily halted Friday, including First Republic, PacWest Bancorp, and Signature Bank.Mike Mayo, Wells Fargo senior bank analyst, said the crisis at SVB may be "an idiosyncratic situation."
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