When Banks Fail: The Collapse of Silicon Valley Bank
The second biggest bank collapse in U.S. History ? Global Bank Indices bleeding? And that is just the tip of the iceberg. The US Banking system is currently facing a crisis, unseen since the days of 'The Great Recession' . This has led to panic among the masses, worried about the safety of their deposits and fearful of a market-wide crisis fueled by a sectoral collapse of global banks. What are the major reasons responsible for the downfall of these banks? And what does the future hold for these distressed banks, capital markets and the general public? On Friday, 10th March 2023, Silicon Valley Bank, the then 16th largest bank in the US was shut down following a 48-hour frenzy. Just a day before this, the stock price of the bank recorded a 60% single day fall after which trading of the stock was halted. Silicon Valley Bank is the second largest bank to 'go under' since the Washington Mutual Bank. There are various reasons which contributed to the sudden and unexpec...