It’s a black week for the American financial system: In just 48 hours, the banking sector has been shaken by the collapse of two major banks.
Most worrying is that these banks served two so-called growth economic sectors: the tech sector and the cryptocurrency industry.
SVB Financial Group, (SIVB) – Get Free Report the lender to Silicon Valley startups, failed on March 10, falling into the hands of the FDIC. The federal agency has taken control of the banking company, reviving the ghosts of the 2008 financial crisis.
SVB was a central player in the innovation economy. It was the backbone of the tech industry in Silicon Valley. It played an important role in the startup ecosystem by providing specialized financial services, industry expertise, a valuable network, and a strong reputation
Two days earlier, Silvergate, the crypto bank, collapsed. The bank was where most of the big crypto firms went, because traditional banks did not want to do business with them. And that reluctance stemmed from warnings from regulators who consider the crypto industry a risky sector.
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Article URL : https://www.thestreet.com/technology/two-us-banks-collapse-in-48-hours-which-one-is-next