US bank busts: A brief history starting 2008, in 5 charts4 min read 20 Mar 2023, 11:03 PM IST
This month saw the collapse of two US banks: Silicon Valley Bank (SVB) and Signature Bank
This month saw the collapse of two US banks: Silicon Valley Bank (SVB) and Signature Bank. SVB, which specialized in serving tech companies, was shut down by the US regulator after a run on its deposits triggered by losses in its securities portfolio. Signature Bank, which had many clients in the crypto space, faced a similar risk. While these closures were the result of specific decisions taken by these banks like over-dependence on securities for returns and a concentrated customer pool, among others, they raked up memories of the 2008 financial crisis and triggered concerns about the banking sector.
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