Customers and investors are scrutinizing fiscal health of smaller banks that may share some similar risks to SVB.
Caution is emerging about the health of some regional banks in the wake of the collapse of Silicon Valley Bank , with Moody's flagging several financial institutions that share some risk factors with the failed bank.
Even so, he added,"the fundamental challenge Silicon Valley Bank faces is also a risk for other banks." When the bank announced its plans to sell assets as well as raise capital through a stock sale, depositors got spooked about its solvency, sparking a classic"run on the bank," which led to SVB's closure less than two days later.Some small businesses and bigger depositors are seeking to shift their assets to bigger banks because of the perception that smaller regional banks may carry higher risks, according to the FT.
"That comes down to your comfort level and how much savings you have in the bank, how much did you put in the bank," Eric Schiffer, chairman of the private equity firm Patriarch Organization, told CBS MoneyWatch."If it's a small business with a $1 million payroll, do you want to go through the administrative hassle of having to file claims with the Fed?"
Among the issues flagged by the ratings agency: First Republic's high amount of unrealized losses in its securities portfolio — an issue that dogged Silicon Valley Bank — and the share of deposits above the FDIC's insurance threshold.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JPMorgan, PNC among suitors for SVB Financial in deal excluding SVB Bank - AxiosJPMorgan Chase & Co and PNC Financial Service Group Inc are among those in talks about acquiring SVB Financial Group in a deal that would exclude its commercial banking unit Silicon Valley Bank that is currently under U.S. control, Axios reported on Monday citing sources.
Read more »
SVB collapse: The Treasury must make whole SVB investorsThe Treasury Department is right to ensure that investors at Silicon Valley Bank have access to their deposits.
Read more »
Silicon Valley exhales after US intervenes in SVB collapseA wave of relief swept over Silicon Valley Sunday following a tense weekend of board meetings, emergency funding plans and pleas for help after regulators stepped in to backstop the region’s embattled namesake bank.
Read more »
Silicon Valley Firms Expect Changes in Financial Methods After SVB DisasterStartups and venture investors voice relief at federal decision to protect Silicon Valley Bank depositors, but see need for new banking practices
Read more »
Silicon Valley Bank Collapse: US Moves to Protect Deposits, HSBC to Buy SVB's UK SubsidiaryGovernments in the U.S. and Britain are taking extraordinary steps to stop a potential banking crisis after the historic failure of Silicon Valley Bank.
Read more »
Silicon Valley Bank collapse: How SVB stock price performed in 5 yearsSilicon Valley Bank had been rated as one of the top banks in America for five years before its closure by U.S. regulators in March 2023.
Read more »