by BoatSurfer600
Obviously. Rates started to go up a year ago. It takes that long for all the banks short term loans/treasuries to come due/payout. The can not borrow fresh loans below the interest rate the long term loans they made. Result: they loose liquidity and money. Once they loose money, people/companies withdrawal their deposits. bank run and they all fall down.
The former CEO of the collapsed lender Silicon Valley Bank (SVB) has said he was “truly sorry” for what he called the “devastating” collapse of the bank that triggered the worst banking crisis since 2008.
Speaking at a Senate banking committee hearing on Tuesday, Greg Becker said he believed the bank was responsive to regulator concerns about managing risk and working to address issues before an “unprecedented” bank run led to its failure.
www.theguardian.com/business/2023/may/16/silicon-valley-bank-collapse-ceo-apologizes
BREAKING: Congress is grilling the CEO of Silicon Valley Bank, Greg Becker, saying he is partially responsible for its failure.
Reminder, he sold $3.57 million of stock in the last two weeks, according to his trading plan, before the bank’s collapse.
— unusual_whales (@unusual_whales) May 16, 2023
“Wall Street is bracing for something bad to happen, but no one has an idea on what will be that catalyst."
"It could be a debt ceiling impasse, persistent banking fears, or a much weaker consumer as sticky inflation becomes more noticeable." Edward Moya, OANDA market analyst
— Cheddar Flow (@CheddarFlow) May 16, 2023