Birdwatch Archive

Birdwatch Note Rating

2023-03-15 13:25:02 UTC - HELPFUL

Rated by Participant: 29E7B9C7E1F6EDAFFF7A01379537C5F6063ED157BFAB089479F6312AF9C14FB6
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Original Note:

Bank regs. played barely any role in SVB collapse. The Fed's high interest rates was the main culprit, followed by wave of withdrawals. SVB then sold off its bonds to recoup cash, creating hysteria, & bigger wave of withdrawals follows, leaving SVB depleted: a run on bank. https://www.grid.news/story/economy/2023/03/13/how-the-feds-interest-rate-hikes-endangered-the-banking-sector-leading-to-svbs-collapse/#:~:text=The%20bank%20was%20thus%20uniquely,and%20the%20rest%20is%20history. https://www.forbes.com/sites/conormurray/2023/03/13/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/

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