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Silicon Valley Bank Run on Deposits

Silicon Valley Bank Run on Deposits

Released Monday, 13th March 2023
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Silicon Valley Bank Run on Deposits

Silicon Valley Bank Run on Deposits

Silicon Valley Bank Run on Deposits

Silicon Valley Bank Run on Deposits

Monday, 13th March 2023
Good episode? Give it some love!
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Silicon Valley Bank failed on Friday March 10, 2023 following a run on deposits, after its parent company’s share price crashed a record 60% on Thursday.

Trading of SVB Financial Group’s stock SIVB had been halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was “monitoring very carefully.” Reaction poured in from several analysts who discussed the bank’s liquidity risk.

California regulators closed Silicon Valley Bank and handed the wreckage over to the Federal Deposit Insurance Corp. later on Friday. Signature Bank of New York, (the main subsidiary of Signature Bank Corp. SBNY, was closed by state regulators and taken over by the FDIC on Sunday.

Below is the same list of 10 banks we highlighted on Thursday that showed similar red flags to those shown by SVB Financial through the fourth quarter. This time, we show how much they reported in unrealized losses on available-for-sale, or AFS, securities — an item that played an important role in SVB’s crisis.

Below that is a screen of U.S. banks with at least $10 billion in total assets, showing those that appeared to have the greatest exposure to unrealized securities losses on AFS securities, as a percentage of total capital, as of Dec. 31.

The latest industry developments include an emergency lending facility set up by federal regulators to help banks avoid selling securities for losses if they need to raise cash to cover deposit outflows. The regulators have also said all depositors of Silicon Valley Bank and the failed Signature Bank of New York would have access to their money — even uninsured deposit balances. First Republic Bank FRC (listed below) announced it had secured funding from the Federal Reserve and JPMorgan Chase & Co. JPM.

Banks are now able to pledge

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