{"id":77160,"date":"2023-12-21T10:30:02","date_gmt":"2023-12-21T10:30:02","guid":{"rendered":"https:\/\/seguridadsispe.com\/?p=77160"},"modified":"2025-03-03T20:16:10","modified_gmt":"2025-03-03T20:16:10","slug":"panic-mounts-over-the-future-of-regional-banks-2","status":"publish","type":"post","link":"https:\/\/seguridadsispe.com\/?p=77160","title":{"rendered":"Panic mounts over the future of regional banks; Biden addresses Silicon Valley Bank shutdown"},"content":{"rendered":"

\"what<\/p>\n

Before the shutdown, some banking analysts dismissed concerns about a potential \u201ccontagion\u201d stemming from SVB\u2019s problems that could unsteady the banking sector \u2014 though without ruling out the possibility that the bank could fail. On Friday, large, diversified banks such as Bank of America and JPMorgan Chase pulled out of an early slump due to data released Friday by the Labor Department. \u00abCurrent pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other banks,\u00bb Morgan Stanley analysts Manan Gosalia and Betsy Graseck wrote in a note Friday, according to CNBC. Still, analysts said that Silicon Valley Bank’s woes are unlikely to ripple through the banking industry as a whole.<\/p>\n<\/p>\n

The fall of Silicon Valley Bank, explained.<\/h2>\n<\/p>\n

Depositors yanked $42 billion from SVB on March 9 alone in a bank run, a panic that appeared to be fueled in part by venture capitalists urging tech startups to pull their funds. \u00abThey really developed a niche that was the envy of the banking space,\u00bb said Jared Shaw, a senior analyst at Wells Fargo. \u00abThey are able to provide all the products and services any of these sophisticated technology companies, as well as these sophisticated venture capital and private equity funds, would need.\u00bb It has also been reported that several notable venture capital funds had advised their portfolio companies to move funds out of SVB. After all, losing access to funds in the event of a bank failure can be devastating for an early-stage start-up. SVB Financial Group (SIVB.Q), the parent company of Silicon Valley Bank, has had a turbulent few days.<\/p>\n<\/p>\n

Fed rated SVB \u00abnot well managed\u00bb and \u00abdeficient,\u00bb Barr says<\/h2>\n<\/p>\n

One way to gauge SVB\u2019s influence in the tech world was to attend a tech conference, where SVB was often a prominent sponsor (and, sometimes, its executives were also featured speakers). Michael Barr, the Federal Reserve\u2019s vice chair of supervision, is now leading a review of SVB\u2019s supervision to try to decipher what happened. The Department of Justice and Securities and Exchange Commission are reportedly undertaking probes as well.<\/p>\n<\/p>\n