Author: Anthony Persuader

Financial Journalist with global coverage.

Rapid Monetary Tightening, Weak Risk Management Increase US Banks’ Risks On 9 March, the California state banking regulator closed Silicon Valley Bank (SVB) and appointed the FDIC as a receiver, after the bank’s attempt to address a very significant asset liability management (ALM) mismatch resulted in a deposit run and, in turn, the bank’s failure. SVB’s failure was followed by just a few days after the announcement that Silvergate Capital Corporation (SI) was winding down its banking subsidiary and paying off all remaining depositors. SI also had a sizable outflow of uninsured crypto-related deposits and suffered losses on long-dated securities…

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