Tuesday saw a turnaround on Wall Street as inflation statistics matched expectations and regional bank shares rallied after severe declines on Monday following the failure of Silicon Valley Bank (SVB).
Six regional financial institutions continue to be closely monitored, but the regulatory reaction to safeguard depositors appears to have alleviated market fears.
In spite of this, Moody’s has lowered its outlook for the whole US banking sector from stable to negative to reflect the fast worsening of the operating environment.
The US Securities and Exchange Commission and Department of Justice have allegedly launched investigations into the failure of SVB and any share sales conducted by management prior to its closure on Friday. Investors have also launched a class action lawsuit against the parent firm, CEO, and CFO.
Tim Mayopoulos, the newly appointed CEO of SVB, has announced that the bank is once again accepting new customers and extending new loans. During the 2008 financial crisis, he led Fannie Mae as its chief executive officer to profitability.
Robert Kiyosaki, a Wall Street guru renowned for forecasting the demise of Lehman Brothers, has identified Credit Suisse as the next large bank most likely to fail.
SVB’s demise upsets the disruptors in technology.
The collapse of Silicon Valley Bank shook the technology industry, which had been the bank’s backbone, and left shattered entrepreneurs grateful for the government bailout that preserved their money as they lamented the loss of a location that functioned as a convivial invention club.
The fall of Silicon Valley Bank upsets the tech industry’s disruptors.
Silicon Valley Bank’s failure shook the technology sector, which had been the bank’s backbone, leaving shattered entrepreneurs grateful for the government bailout that rescued their money as they lamented the loss of a location that functioned as a sociable incubator of innovation.