American banks may run into problems after the bankruptcy of Silicon Valley Bank (SVB). These release reports New York Times.
The publication notes that the bankruptcy of the SVB, whose assets were taken over by the Federal Deposit Insurance Corporation, raises fears that other banks may face similar problems.
The publication emphasizes that the bankruptcy of the bank occurred two days after the credit institution took urgent measures to process withdrawal requests. At the same time, the sharp decline in the value of the SVB’s investment assets “has shaken Wall Street and savers, causing stocks to plummet.”
The NYT states that the problems faced by the Silicon Valley Bank may spread to some parts of this sector in the future. In this context, the article says that Janet Yellen, the head of the US Department of the Treasury, gave public assurances to investors about the stability of the American banking system.
It was previously known for the first time in the United States since the 2008 financial crisis. bankrupt one major bank is Silicon Valley Bank (SVB).