SVB's Mismanagement and Rapid Withdrawals Cause Implosion, Says Fed Official.
TL;DR
Silicon Valley Bank experienced a rapid and unprecedented run on deposits, with $42 billion withdrawn in just hours, leaving the bank with a negative cash balance of $958 million. Federal Reserve Chairman Jerome Powell has called for possible regulatory and supervisory changes to keep up with the speed of such events. Fed Vice Chair Michael Barr has criticized the bank's management, calling its failure a "textbook case of mismanagement." First Citizens Bank has acquired SVB's assets at a discount of $16.5 billion.
Topics:businessfinance#acquisition#bank-run#finance#mismanagement#regulatory-changes#silicon-valley-bank
- Silicon Valley Bank’s rapid withdrawals, management missteps created perfect storm Fox Business
- Fed's Michael Barr: Our banking system is sound and resilient CNBC Television
- Fed's Barr to Congress: SVB's failure is 'textbook case of mismanagement' Yahoo Finance
- This is why SVB imploded, says top Fed official CNN
- Senators Ask Powell If Fed Used Full Powers to Supervise SVB Bloomberg
Want the full story? Read the original reporting
Read on Fox Business