The Banks Are FAILING!! SVB Collapse & Everything It Means!!
Hey Guys,
It was the second biggest bank collapse in US history, and the biggest collapse since the great financial crisis. It caught the regulators off guard and led to one of the biggest de-peggings of a stablecoin since Terra's UST meltdown.
The failure of SVB bank was an incredibly exposition of the fragility of the US banking system. It was a bank that badly managed its liquidity and took some outsized bets on fixed income assets. Not only that, but they also had no hedges in place to protect themselves from higher interest rates.
All of these factors combined with a downgrade and a botched share sale led to the run on deposits. In less than 48 hours, the bank went from a potential share sale to fully insolvent and in the hands of the FDIC.
This led to an even madder scramble over the weekend as companies (including Circle) wondered if they would ever have access to their funds.
It ended with a rescue operation by US regulators and agencies. But this came as a double edged sword as it saw Signature bank shuttered for no apparent reason (apart from being "pro crypto").
There is a lot more this story and I promised to do more in-depth video on the collapse. And that's what I have for you today.
Enjoy!
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⛓️ 🔗 Useful Links 🔗 ⛓️
BackStory on SVB: https://www.wsj.com/articles/greg-bec...
Startup Bank Had a Run: https://www.bloomberg.com/opinion/art...
No Hedging: https://twitter.com/MacroAlf/status/1...
Banks where Circle Holds: https://twitter.com/AutismCapital/sta...
Coming Downgrade: https://www.reuters.com/markets/us/si...
Bank Losses: https://twitter.com/balajis/status/16...
Money in System: https://twitter.com/gaborgurbacs/stat...
Where were the Regulators?: https://www.wsj.com/articles/where-we...
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
