Invest
Bank Blues: A Reminder to Chill And Not Be So Pessimistic
By The Moss Piglet  •  March 13, 2023
What a week for the banking industry. Earlier this week,  Silvergate Capital ($SI) would be winding down operations and liquidating its underlying Silvergate Bank. That was an abrupt end for the firm which had been in business since the 1980s. However, Silvergate ran aground after its business pivot into cryptocurrencies led it to a massive withdrawal of deposits last year. Silvergate was unable to effectively plug the hole in its balance sheet leading to the bank suspending operations and shareholders seeing a near total wipeout in value. Silvergate was not a particularly huge firm, and as such, it didn’t send shockwaves through the market. But closely following Silvergate’s decline, a much bigger firm ran into trouble. We see SVB Financial ($SIVB), the holding company for Silicon Valley Bank, failed in an attempt to plug a hole in its balance sheet. The bank announced its capital raise had failed on Friday morning, and that it was putting itself up for sale. That didn’t keep the problems away,...
Read the full article
By The Moss Piglet
This blog is named after the world’s most indestructible creature – the moss piglet, or also known as tardigrades. These microscopic animals are even more hardier than cockroaches and will continue to thrive for billions of years. The reason why this microbeast is chosen to represent this blog is that we aim to create a resilient investment portfolio for all stages of the economic cycle.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance