SVB had prompted a global sell-off in banking stocks after it launched a rescue share sale to plug a near-$2bn (£1.7bn) hole in its finances. I worry about folks overreacting to this and overcorrecting.”
“Bank runs can start on a rumor and this is much bigger than a rumor. “Fear is contagious,” said Angela Lee, a Columbia Business School professor of venture capitalism. Global institutions including the Bank of England are monitoring the situation closely amid concerns that the turmoil could put customers’ deposits at risk and lead to further panic across the financial system.
Silicon Valley Bank (SVB), the nation’s 16th largest bank, failed after depositors – mostly technology workers and venture capital-backed companies – hurried to withdraw their money this week as anxiety over the bank’s situation spread.
