BlackRock's Larry Fink says the US banking system may face 'more seizures and shutdowns' after Silicon Valley Bank's collapse
A jump in interest rates since March 2022in Silicon Valley Bank's bond holdings, sparking last week's run on deposits.
Fink said the fall of SVB recalled other periods of"spectacular financial flameouts" following prior tightening cycles. Those include the"slow-rolling" Savings and Loan Crisis in the 1980s and the early 1990s when thousands of financial institutions failed, and the 1994 bankruptcy of Orange County, California.
"We don't know yet whether the consequences of easy money and regulatory changes will cascade throughout the U.S. regional banking sector with more seizures and shutdowns coming," wrote Fink, who heads the world's largest asset manager.
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