A third U.S. bank has failed in the space of a week, and this time its the same one that closed President Trump’s accounts two years ago, reasoning that it would not do business with Trump after [.]
would face tougher scrutiny, they tried to and were successful in raising that so that banks at the 5200 $250 billion level did not face those tougher restrictions. and look, the banks argued that they didn t want to face the paperwork, they didn t want to face the restrictions, that the restrictions would restrict them from lending money which would hurt the economy. that was their argument. hour money which would hurt the economy. that was their argument. that was their argument. how is it that silicon that was their argument. how is it that silicon valley bank that was their argument. how is it that silicon valley bank and - that silicon valley bank and announced that business is conducting business at usual in the us in the moment s one are the repercussions going to be for quest marki repercussions going to be for quest mar r ~ ., mark i think the ferc and the regulatory mark i think the ferc and the regulatory system mark i think the ferc and the regulatory system in - m
get into twehe weeds too much, t by raising rates, bond prices went down, that increased the assets that silicon valley bank was relying on for its balance sheet here, but bigger picture, has the fed raised rates so quickly to spark this bank panic here? oh, absolutely. the problem here goes right back to the fed rapidly raising interest rates. this bank did what in other times would have been a very solid investment. they invested in american bonds, the u.s. government bonds. their miscalculation was how rapidly the fed was raising the interest rates, which de-valued the bonds that they held. and then that led to the run. they had to sell those bonds at a loss. and now suddenly, we ve got a bank that s upside down. yes, the fed has to be very careful here. if they do another very rapid and they re talking about it, rate increase, it s going to
those that were affected. thanks, governor. we ll see how trading goes tomorrow regional. the old maximum used to be you could be too big to fail. we ve had three occasions where you could be a smaller medium sized bank deemed to important to let go. that s where we stand. there s a huge gap. trillions of dollars worth how far you go. dana: i am dana perino if kennedy, harold ford jr., jesse watters, brian kilmeade, have already gotten started with a big fight so it is 5:00 in new york city and this is the five. this morning president biden scrambling to prevent a full-blown bank panic as fears grow. the president forced to take emergency measures after two of the biggest financial failures in u.s. history. silicon valley bank, the first to collapse followed by the implosion of signature bank. both cater to the tech start-up
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