Collapse of Silicon Valley Bank is second largest in US History Archived Message
Posted by Adamski on March 12, 2023, 5:44 pm
Silicon Valley Bank was closed by regulators on Friday after depositors rush to get their money. The bank is a major leader of tech start ups and the spectacular collapse over two days is seen post the feds 4 triilion dollar injection into the market after the market freeze of March 2020 and now the interest rate hikes that has resulted in security bond yield increasing but their market value significantly decreasing. https://www.wsws.org/en/articles/2023/03/11/uqtd-m11.html
Some interesting comments by Tooze. https://adamto oze.substack.com/p/chartboo…
He says banks generally are sitting on big losses from the interest rate hike effects on the value of their bond portfolios.
Bloomberg says this morning the situation will hit the SBV bank in England on Monday when it will be declared insolvent, and may hit other SBV banks in other countries such as India, China, Germany and Israel.
Leaders of roughly 180 tech companies today sent a letter calling on UK Chancellor Jeremy Hunt to intervene, claiming “The loss of deposits has the potential to cripple the sector and set the ecosystem back 20 years