Attention Economy


Friday, March 10, 2023

SVB Failure - Beware of Financial Risk

Silicon Valley Bank Feels the Toll of the Fed’s Inflation Fight
https://www.nytimes.com/2023/03/10/opinion/silicon-valley-bank-federal-reserve.html

SVB and Silvergate Tumult Has Echoes in Texas Bank Crisis
https://www.washingtonpost.com/business/energy/2023/03/10/svb-and-silvergate-bank-tumult-in-california-has-echoes-in-texas-crisis/616f8542-bf72-11ed-9350-7c5fccd598ad_story.html
Paul Davies:
Both crypto and venture capital booms were children of the ultra-low rates of the past decade and a half. Now, rising rates and the shrinking of the Federal Reserve’s balance sheet have burst those industry bubbles and increased the competition among banks for funding. Banks are having to pay much higher interest on instruments like certificates of deposit. Anyone with spare cash is increasingly aware that they can earn something on it without taking much risk, which is another reason for people to move money out of a smaller lender concentrated in digital businesses, if they haven’t already.

Silicon Valley Bank Fails After Run by Venture Capital Customers
https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html
Silicon Valley Bank’s Collapse Causes Start-Up Chaos
https://www.nytimes.com/2023/03/10/technology/silicon-valley-bank-fallout.html

Silicon Valley Bank Closed by Regulators, FDIC Takes Control
https://www.wsj.com/articles/svb-financial-pulls-capital-raise-explores-alternatives-including-possible-sale-sources-say-11de7522
Silicon Valley Bank Collapses in Biggest Failure Since 2008
https://www.bloomberg.com/news/articles/2023-03-10/silicon-valley-bank-collapses-enters-fdic-receivership
 
The Everything Bubble Implosion Comes for Banks
https://www.bloomberg.com/news/newsletters/2023-03-10/svb-crisis-puts-vcs-at-risk-silvergate-shuts-down-adani-on-world-tour
Why Is the US Regulating JPMorgan But Not SVB?
https://www.bloomberg.com/opinion/articles/2023-03-10/banking-why-is-the-us-regulating-jpmorgan-but-not-svb
 
Will financial stability concerns derail the Fed’s inflation fight? BY VIVEKANAND JAYAKUMAR, The Hill - 10/17/22
https://thehill.com/opinion/finance/3691022-will-financial-stability-concerns-derail-the-feds-inflation-fight/ 
Have misguided policies led to recent asset bubbles and boom-bust cycles? BY VIVEKANAND JAYAKUMAR, The Hill - 02/16/21