The sudden collapse of Silicon Valley Bank was met by an equally swift response from US regulators. But the crisis is far from over, and the nature of the authorities’ response introduces problems of its own.
TOKYO – The sudden collapse of Silicon Valley Bank on March 10 was met by an equally swift response from US regulators, who announced plans to make whole all depositors, including the uninsured. But the SVB failure was immediately followed by the collapse of New York’s Signature Bank on March 12, and then by Credit Suisse’s troubles a week later. The latter, once one of the world’s biggest investment banks, is now being taken over by UBS at a massive discount.
TOKYO – The sudden collapse of Silicon Valley Bank on March 10 was met by an equally swift response from US regulators, who announced plans to make whole all depositors, including the uninsured. But the SVB failure was immediately followed by the collapse of New York’s Signature Bank on March 12, and then by Credit Suisse’s troubles a week later. The latter, once one of the world’s biggest investment banks, is now being taken over by UBS at a massive discount.