- What happened to SVB? To put it simply, SVB has been screwed badly by the relentless interest rate hikes that eventually caused
What a week it has been which culminated with the collapse of 2 US banks within a week. The collapse of Silvergate Capital Corp followed by the Silicon Valley Bank ("SVB") is absolutely shocking. It does not help when US Treasury Secretary Janet Yellen said that she is monitoring "a few banks very carefully” and that it’s a “matter of concern” that banks such as SVB Financial are experiencing financial losses. The monitoring "a few banks very carefully" remark certainly does not calm the market but further eroded market confidence in the US financial system. This could ended up worse than 2008 and rival the Great Depression in 1937 if the US Treasury and Federal Reserve failed to instill confidence and resulted in nightmarish bank runs (trademark of the 1937 economic collapse) by depositors.