The entity created by federal regulators to oversee SVB, the Deposit Insurance National Bank of Santa Clara, has quite a few things to sort out. Not knowing his last name and only that he lived in a place that sounded something like Berampur, Saroo is labeled lost by the Indian government and winds up adopted by an Australian family. "It's really just a fear that has gripped the market, and is sort of self-perpetuating at this point," says Shaw. A Long Way Home is about a boy named Saroo, who at five years old becomes lost from his family and winds up on the other side of India. Wells Fargo analyst Shaw also said other banks were hit by panic selling. "We do not believe there is a liquidity crunch facing the banking industry." "We want to be very clear here," they wrote. Yet by Friday, fears about the health of the broader banking sector had eased, even before the FDIC took over SVB.īank analysts at Morgan Stanley said in a note "the funding pressures facing" Silicon Valley Bank "are highly idiosyncratic and should not be viewed as a read-across to other regional banks." A meticulously documented re-telling of the. Bonds and stocks have been hammered since last year, as the Federal Reserve has raised interest rates aggressively, and SVB also noted it wanted to pare down its bond portfolio to avoid further losses.īut that announcement spooked the bank's clients, who got worried about SVB's viability, and then proceeded to withdraw even more money from the bank - a textbook definition of a bank run.Įconomy Federal Reserve Chair Jerome Powell warns inflation fight will be long and bumpy The Long Way Home Revised Edition - A Journey Into History With Captain Robert Ford by Ed Dover (2010)(). SVB said earlier this week, that in order to make good on those withdrawals, it had to sell part of its bond holdings at a steep loss of $1.8 billion. That filled the lender's coffers, and SVB had about $174 billion in deposits.īut in recent months, many of Silicon Valley Bank's clients had been withdrawing money at a time when the tech sector as a whole has been suffering. Silicon Valley's business boomed as tech companies did well during the pandemic. The bank suffered a run on deposits that led to its collapse. People walk through the parking lot at the Silicon Valley Bank headquarters in Santa Clara, Calif., on March 10, 2023.
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