On March 10, the biggest failure of a US bank since the global financial crisis was playing out in real time as a major lender to the tech industry succumbed to a classic bank run.
Silicon Valley Bank’s customers were frantically pulling their money from the California-based lender before US regulators intervened to take control. But the collapse panicked markets, piling pain on weaker financial institutions already struggling with the unintended consequences of soaring interest rates and self-inflicted wounds. A week on, a second US regional bank — Signature Bank — has been shut down, a third — First Republic Bank (FRC) — has been propped up, and the first major threat since 2008 to a bank of global financial significance — Credit Suisse — has been averted after it was taken over by UBS.
But the relative calm has been restored only thanks to the provision of huge sums of emergency cash from lenders of last resort — central banks — and some of the industry’s strongest players. Continue reading from CNN Business
