The Silicon Valley Bank Collapse, Explained | WSJ

preview_player
Показать описание
The abrupt collapse of Silicon Valley Bank, the second-biggest bank failure in U.S. history, happened after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital. This prompted regulators to impose emergency measures to stem the fallout.

WSJ’s Rachel Ensign explains how the crisis unfolded and what could happen next.

Photo: Jeff Chiu/Associated Press

0:00 Silicon Valley Bank collapsed on March 10
0:30 What led to the Silicon Valley Bank collapse?
1:53 How the SVB collapse could have broader economic effects

#SiliconValleyBank #SVB #WSJ
Рекомендации по теме
Комментарии
Автор

About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?

bobwright-
Автор

The disastrous decision to repeal the Glass-Steagall Act in the late 1990s led to the spectacular failure of huge banks during the financial crisis of 2007–2008. To prevent a future catastrophe, Dodd-Frank and this Act both need to be revived right away. What happened with SVB is just the start of what will happen if nothing is done to address the current problem.

shellylofgren
Автор

Honestly, I'm unsure if investing is a wise move right now. Take note of how frequently things fail. As I still have some time before I retire, I'm still looking for a better strategy to invest my money despite reading charts and predictions from well-known investors from the past and present. In order to generate passive income, I want to build a solid and reliable portfolio.

AntonioBianh
Автор

I'm sure no CEO will be held responsible for their incompetence

hwhack
Автор

FED: We need people unemployed and bankrupt to calm inflation..
**2 days later SVB goes under**
FED: Wait, not THOSE people, only poor and middle class can fail in this economy, as usual

Seanpfree
Автор

A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

akirakrusemark
Автор

SVB’s real problem was the homogeneity of their depositors. A liquidity crunch in the startup scene meant that pretty much all of their cash was gone. Had they had a more diversified pool of depositors, this wouldn’t have stung as badly.

dimasrahardja
Автор

The ceo & executives effectively cashed in by selling shares & had this bank dissolved in 2 days.

When you put your money in the bank THEY own it, they let you use it in the interm. They use it daily to invest & grow THEIR porfolios... not yours.

vrtxttb
Автор

Who else is feeling the heat of the economy and the unpredictable stock market? Raises hand Yep, that's me with my $730k portfolio made up of bonds and stocks. I've been tossing and turning at night wondering if it's time to liquidate and flee for the hills. Anyone else in the same boat?

brettbing
Автор

Privatize the gains, then socialize the losses

bucknasty
Автор

There is not a single bank that could withstand a majority of of customers pulling all their money from their accounts. Most banks don’t have more than 10% capital. Under the right circumstances any bank can fail.

CouchMan
Автор

Banks should not be bailed out. They should take responsibility for terrible decision-making.

dimasrahardja
Автор

The irony is that the bank is getting slammed for being too safe. Generally bonds are one of the safest investments possible. But it's a unique perfect storm of devaluation and withdrawal. Generally these types of financial institutions should be punished for making risky investments with our money, but this isn't it.
Regardless, these people have had enough bailouts.

reviewchan
Автор

Fantastic explanation. Thank you for taking the time to draw it out in such an easy to understand manner.

betterchapter
Автор

In 2015, Silicon Valley Bank stated that it served 65% of all U.S. startups. In 2022, Silicon Valley Bank began to incur steep losses following increased interest rates and a major downturn in growth in the tech industry, where the bank's liabilities were heavily concentrated.

thelastsay
Автор

When you deposit high amount of cash in the bank, you are a investor to the bank not a depositor.

sanjayaadhikari
Автор

Signature Bank of New York went under yesterday as well. $320 billion of banks being shut down in a weekend!

adventuretribe
Автор

Thoughtful and articulate synopsis. Thank you.

rodhoover
Автор

Thanks for explaining it simply! First one I’ve understood :’)

RA-wpth
Автор

Why shes not using her real natural voice. Why people think that making the voice more deep and changing the tone is fashionable? Its not. Use your own voice.

begufibegufi