BANKING COLLAPSE
Another banking crisis on the horizon? SVB collapses within 48 hours
Once the darling of the venture capital community, Silicon Valley Bank is now the second-biggest bank failure in U.S. history
If the larger economic picture was not scary enough for investors to get spooked, a couple of high-profile banking failures in quick succession have certainly taken the risk sentiment off the table. The question now on everybody’s mind is whether we are at the cusp of another banking collapse as we saw in 2008 — one that shook up the entire global financial landscape. Has the super-aggressive Federal Reserve pushed the banks to the brink? Let’s try to make sense of it all.
Earlier last week, I wrote about the Silvergate fiasco — a crypto-friendly U.S. bank announced that it was winding down its operations, owed largely to its excessive exposure to the FTX crypto exchange, which declared bankruptcy. At the time, many analysts believed that the lack of regulatory oversight in the nascent crypto industry was contributing to all these failures. As it turns out, the second-biggest U.S. bank failure points to a possible wider tech industry problem.
