Silicon Valley bank crashed (US)

On March 10, 2023, Silicon Valley Bank crashed. It was the 2nd largest bank failure in US history.

It was the bank of choice for tech startups.

This seems to be underplayed in the news. This bank is not an isolated issue with other similar sized banks (big but not global big, so called regional US banks) facing similar problems. The hike in interest rates has exposed their weak reserves, poor risk management - and Trump squashing Dodd-Franks (which meant they had limited over-sight). Other banks are likely to follow or require bail-out. Same old story - reduce over-sight and regulation and risk goes up. When risk goes up the high profits are rapidly followed by a crash. There is a real risk that something like 2008 repeats with the need for massive state bail-out. Lets hope not.

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I’m not sure I’d say it was underplayed in US news. Biden had to come out with a statement to calm people. Three banks crashed in March 2023.

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Credit Suisse is the big story in Europe

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I don’t think it’s been underplayed in U.K. news broadsheet papers, either - I’ve read detailed reports on it in The Telegraph, The Guardian and The Financial Times - and The Independent and Sky News have covered it too - and the U.K. Prime Minister has acknowledged the issues and tried to calm fears about it too.

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Bank crashes are used, usually to cover up other bad fiscal news. :icon_wink:

I was responding to a previous post, saying it had been underplayed in the News.
In the newspapers I have read, it has not been underplayed - whatever the reasons for reporting it, it has definitely been reported.

I heard it, but wasn’t surprised, can’t have read it from a newspaper, only read local free rags.

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It was the front page headline of the FT weekend paper version last week. Online news will be different but then it’s usually free so they go for clickbait articles in newsfeeds.