Silicon Valley Bank Collapse: A Stark Reminder of the Risks of Putting All Your Eggs in One Basket
The collapse of Silicon Valley Bank (SVB) on Friday, March 12, 2023, has become the largest bank failure in US history since the 2008 financial crisis.[0] SVB was the “financial partner of the innovation economy,” catering to nearly half of all US venture-backed startups and working closely with venture capital firms.[1] It was a publicly […]
Continue reading Inflation Slows in February as CPI Rate Eases to 6%
The closely watched gauge of inflation, released Tuesday morning, showed that annual price increases continued to slow in February, according to the report from the Bureau of Labor Statistics (BLS). The U.S. consumer price index (CPI) for February, a key indicator of goods and services inflation, is likely to show that price growth continued to […]
Continue reading Silicon Valley Bank Collapse Highlights Need For Diversification and Regulation
Silicon Valley Bank (SVB) was founded in 1983 and quickly became the go-to bank for the tech sector in Santa Clara, California.[0] It claimed to be the financial partner for nearly half of all US venture-backed startups by 2021.[1] SVB’s close ties to the financial infrastructure of the tech industry made it risky for the […]
Continue reading February Inflation Data Ahead of Fed Meeting: What to Expect
Economists expect the US Consumer Price Index (CPI) for February, a key indicator of goods and services inflation, to show that price growth continued to moderate last month, albeit just slightly from January’s level.[0] The CPI, which measures a basket of goods including gasoline, health care, groceries, and rent, is expected to have risen 0.4% […]
Continue reading Last High-Impact Economic Report Before March 22 Fed Meeting: Inflation Expected to Slow
This week’s economic data will be the last high-impact report before the Federal Reserve’s upcoming March 22 policy meeting, giving the central bank a more comprehensive view of the U.S. economy ahead of its decision.[0] The Consumer Price Index report is expected to show that inflation cooled slightly in February, with headline inflation forecast to […]
Continue reading Biden Reassures Americans: Banking System is Safe and No Taxpayer Money Lost
President Joe Biden sought to reassure Americans on Monday that the banking system is safe following the collapse of Silicon Valley Bank and Signature Bank, both based in the United States. The federal government had to intervene to backstop deposits at both banks, leading to worries about the security of other regional banks.[0] “Americans can […]
Continue reading Biden Vows to Strengthen Banking Regulations After Silicon Valley and Signature Bank Failures
President Joe Biden addressed the nation on Monday, assuring Americans that the banking system is safe and that their deposits will be there when they need them.[0] The speech came after the collapse of Silicon Valley Bank and Signature Bank raised fears of a full-blown banking crisis. Biden said he will ask Congress and the […]
Continue reading Silicon Valley Bank Collapse: FDIC Intervention & Concerns of Systemic Financial Instability
Silicon Valley Bank, a key lender to many of the world’s most powerful tech investors, collapsed on Friday and was taken over by the Federal Deposit Insurance Corporation (FDIC). This marks the second-largest failure of a financial institution in US history since the 2008 Global Financial Crisis.[0] Over 90 percent of Silicon Valley Bank’s deposits […]
Continue reading President Biden Reassures Americans That Banking System is Safe and Deposits Secure
President Joe Biden reassured Americans on Monday morning that the banking system is safe and their deposits will be secure, following the collapse of two of the nation’s largest banks, Silicon Valley Bank and Signature Bank. Biden said his administration took “quick action” to protect customers’ deposits without putting taxpayers at risk. “Americans can have […]
Continue reading Silicon Valley Bank’s Collapse: A Cautionary Tale of Overexposure to Tech
Silicon Valley Bank, the California bank subsidiary of SVB Financial Group (SIVB), was shut down Friday by the California Department of Financial Protection and Innovation with the Federal Deposit Insurance Corporation (FDIC) appointed as its receiver.[0] SVB’s downfall was tied to the plunge in the value of bonds it acquired during boom times and its […]
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