Where were the regulators as SVB crashed?
Silicon Valley Bank’s failure boils down to a simple misstep: it grew too fast, using short-term borrowed money from depositors who could demand repayment at any time, and invested it in long-term assets that they couldn’t or couldn’t was ready to sell.
As interest rates rose rapidly, it was hit with losses that ultimately forced it to raise fresh capital, which spooked depositors, who ripped off their funds within two days. The question after Friday’s takeover of the bank: How could regulators allow it to grow so quickly and take on such high interest rate risk?
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https://www.wsj.com/articles/where-were-the-regulators-as-svb-crashed-35827e1a?siteid=yhoof2&yptr=yahoo Where were the regulators as SVB crashed?
