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?

What’s new

https://www.wsj.com/articles/where-were-the-regulators-as-svb-crashed-35827e1a?siteid=yhoof2&yptr=yahoo Where were the regulators as SVB crashed?

Russell Falcon

Nytimepost.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@nytimepost.com. The content will be deleted within 24 hours.

Related Articles

Back to top button