Why Did Silicon Valley Bank Fail? The Contagion Risk - SVB

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This week, Silicon Valley Bank (SVB), the 16th largest bank in the United States, became insolvent in a matter of 48 hours. The bank now sits in the hands of the FDIC which has sent ripples across the financial markets. In this article, I’m going to address:

• What caused SVB to fail?
• The contagion risk for the banking sector
• The business fallout for start-ups
• How this could impact Fed policy

Silicon Valley Bank

SVB has been in business for 40 years and at the time of the failure, had about $209 Billion in total assets, ranking it as the 16th largest bank in the U.S., so not a small or new bank. But it’s important to acknowledge that this bank was unique when compared to its peers in the banking sector. This bank was known for its concentrated lending to start-up tech companies and venture capital firms.

#investing #greenbushfinancial
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Your videos are all excellent...I love the fact that regular people can always understand the financial information in them Keep up the great work.

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