Behind the Banking Crisis That Shook the Financial System
For the first time since the financial crisis of 2008–09, confidence in the U.S. banking system has eroded as three major banks shuttered in one week: Silvergate, Silicon Valley Bank (SVB), and Signature Bank. As experts brace for the next domino to fall in the unfolding turmoil, the federal government and the Federal Reserve are trying to prevent a contagion effect that could devastate the broader economy.
But will these efforts be enough?
In the fallout of SVB and Signature Bank, the public is still trying to wrap its collective head around what exactly happened to these financial institutions. While there were several reasons for SVB’s collapse, interest rates played a considerable factor….