Silicon Valley Bank: What Happened, What Does It Mean and, Is There A Systematic Problem?

1 year ago
46

I looked into the second-largest, most recent, collapse in American bank history. Silicon Vally Bank, what happened? Members of SVB's C-Suite had been selling of their shares for weeks, what did they know and when did they know it?

The FED has been raising interest rates to where Treasury Bonds weren't generating enough to cover the balance sheet, though banks like SVB were told to buy them since inflation is only "transitory."

It wasn't. Last week, SVB had to quickly sell of its some securities to handle a major shortfall.

They didn't do it fast enough. Peter Thiel had a major financial transaction take too long and knowing the position of the bank, advised all those in his Founder's Fund to get their money out of SVB.

This started on Thursday, and by Friday, the bank was defunct and under the control of the California Dept of Banking then later the FDIC. Bank Confidence was shaken, leading to a freefall of the share price of regional banks like Signature Bank and New Republic Bank... By Sunday, Signature Bank was under the control of regulators in New York.

On Monday, New Republic continued to fall, before rallying this morning. Who's at fault here and what does it mean? I'm just an observer and by no means an expert.___________________________________________________________________________
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