Steve Forbes explains why more trouble is coming following the collapse of SVB and Signature Bank, and who’s actually at fault for the bad times now roiling the banking sector.
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LEARN MORE ABOUT: Bank Failures
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The collapse of Silicon Valley Bank (SVB) and Signature Bank may just be the beginning of bad news for the banking industry. Both banks had significant exposure to the technology and cryptocurrency sectors, which are experiencing significant volatility and uncertainty.
SVB, in particular, was heavily invested in the booming startup industry, which has been hit hard by the economic downturn caused by the COVID-19 pandemic. With fewer venture capitalists willing to invest in startups, many of SVB’s loan portfolios are now facing significant default risks.
Signature Bank, on the other hand, was heavily invested in the cryptocurrency industry, which has experienced a significant market correction in recent months. The bank’s holdings of bitcoin and other cryptocurrencies could result in significant losses, as the market continues to fluctuate wildly.
These collapses could spell more trouble for the banking industry, as there are indications that other banks may be overexposed to the technology and cryptocurrency sectors. If these sectors continue to experience significant volatility, more banks could face significant losses and potentially collapse.
Beyond the immediate impact on the banking industry, these collapses could also have wider economic implications. The technology and cryptocurrency sectors are integral to the broader economy, and if they continue to struggle, it could impact economic growth.
Investors and regulators will be watching closely to see how other banks are impacted by these collapses, and whether they will take steps to mitigate their exposure to these high-risk sectors. As the economic fallout from the pandemic continues to unfold, it remains to be seen what other bad news may be in store for the banking industry.
The SVB situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty.
SVB MELTDOWN,Clinton,Etc…
Thanks for the history lesson I didn't need rather than answering your own question.
A lot of the small local banks are being stingy..the public isn't seeing interest being paid proportionately with last year's Fed rate hikes..with the click of a mouse I all but abandoned the local hometown bank..my account is still open over there with a balance of less than $100..I now use my cheapskate community bank for a check cashing booth and keep my nest egg in one of the big 5.
Thank you for calling out those accountable
This is a rich man's panic. The investor community benefits from low stock prices or a recession.
Thanks for the good summary. correct me if I'm wrong but I imagine why they're going after Binance and Coinbase is because they're basically becoming banks in of themselves. Crypto is supposed to be decentralized, but these institutions are centralizing it and are by default becoming like crypto banks. trading is way profitable than holding. Trading went smooth for me as I was able to raise over 19 BTC when I started at 3.5 BTC in just 3 weeks of implementing trades with signals and insights from Bernard Wong —
So, just as with guns, more greed solves every problem caused by greed, says the extreme capitalist.
Her in Brazil, taxes are skyrocketing ….
The Israelites keep telling you 400 yrs is up
This is the same magazine that had leading stories about rising stars, who ended up by being corrupt. I’m not sure we should believe Forbes but anything.
If the FED hadn’t printed five trillion during the COVID crises then we would had collapsed into a Great Depression. All they did was differ the inevitability from all that money for nothing to get through COVID shut down.
Its never allows the body get any, all investor do not you
Lie
As sure as the sun will rise in fhe am will all the banks fail.
Buying opportunity 2008 Citibank $1.00 a share !
Take out your money out of the banks soon you cant get anything out
Mike Gill vs the new hampshire drug cartel : svb bank collapse ( Israeli front )
These Regional Bank directors had better start fighting hard for their customers – not cop out to the Fed and let themselves fail!
Remember how stocks tanked whenever the Fed mentioned raising rates? I'm sure there's a clip of Forbes saying "too soon, not now".
Pandora Papers demand the names. Link to crypto. Sarah Westall and Mike Gill. Mike Gill State of Corruption
Smells like another con job intended to pss the buck off on the citizens again. I'm not buying it. Read below, one says it's bad one says it's good, and the truth will never be known except by history a year from now.
The gold revolution has begun we need to invest in safe haven assets
The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.
Wow the Fed is to blame for SVB, says Forbes. If we would just let the free market operate, reduce regulation and lower taxes. Really rich people like him need lower taxes? Forbes has boosted the likes of Elizabeth Holmes of Theranos, Adam Neumann of WeWork and Sam Bankman-Fried of FTX before they destroyed their companies. And SVB was on Forbes list of best banks. Can we really trust him now that he blames the government for having low interest rates when those rates allowed unprecedented growth? That very government he blames is all there is left to rescue depositors and victims of "free market" capitalism's scams, bad judgment and excesses. The same government that rescued millions from poverty during the pandemic, rescued America from the Great Depression, kept us from going into a 2nd Great Depression 2008-2009.
EXCELLENT
Funny thing is HSBC UK bought the London branch of Silicon Valley Bank for £1!!!!
Banking=impunity and unaccountability . Biden’s Bail Back Better . Weimar Republic 2.0