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Western Banks in Turmoil Once Again
There is turmoil in banking in the United States (US) and Europe. It has taken the world by surprise. Banks were supposed to have become much safer following the regulations put in place after the Global Financial Crisis (GFC) of 2007–08. The betting was that a financial crisis this time would emanate in the world of corporate debt, not in banking.
There is turmoil in banking in the United States (US) and Europe. It has taken the world by surprise. Banks were supposed to have become much safer following the regulations put in place after the Global Financial Crisis (GFC) of 2007–08. The betting was that a financial crisis this time would emanate in the world of corporate debt, not in banking.
The current turmoil began with the collapse of Silicon Valley Bank (SVB), a mid-sized bank, which was quickly followed by the failure of two other banks, Signature Bank and Silvergate Bank. The primary reason for the failure of SVB has been well-documented by now but is worth capturing in brief.
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