Investors have warned that the failure of government regulators to announce a new plan for restoring SVB’s deposits could lead to cascading issues in other small- and mid-sized banks as well as financial markets.
Sen. Mark Warner , a member of the Senate Committee on Banking, Housing, and Human Affairs, said on ABC’s “This Week” that the “best outcome is an acquisition of SVB.”
SVB had tens of billions of dollars in agency mortgage-backed securities. Those assets are highly liquid and could in theory be sold quickly with little loss. Regulatory reforms since the 2008 financial crisis have also made mortgage-backed securities much safer than the ones that contributed to financial stability issues back then.
Other assets held by SVB include loans that are less liquid and may be more difficult to sell. That process could take several weeks or more and end with uninsured deposits being restored at less than 100%.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Silicon Valley Turned on Silicon Valley BankThe fallout from Silicon Valley Bank threatens to engulf Silicon Valley—and has put the rest of the banking system on edge
Read more »
Bank regulators seize Silicon Valley Bank in largest bank failure since the Great RecessionThe bank failed after depositors — mostly technology workers and venture capital-backed companies — began withdrawing their money creating a run on the bank.
Read more »
SVB Collapse: Silicon Valley Bank is biggest US bank failure since 2008 crisisSilicon Valley Bank is the biggest US bank failure since Washington Mutual during the 2008 financial crisis
Read more »
Silicon Valley Bank collapse marks worst bank failure since Great RecessionSilicon Valley Bank, the 16th largest bank in the U.S., collapsed on Friday, marking the worst bank failure since the fall of Washington Mutual during the Great Recession in 2008.
Read more »
Silicon Valley Bank employees react to the bank's stunning failureHow SVB employees are coping after being ordered to leave the office, from polishing their resumes to hitting the bar: 'We're pretty much in the dark'
Read more »