Paul Krugman says Silicon Valley Bank could've been called the 'Schmoozing and Vibes Bank,' but it's probably not another 'Lehman moment'
with the value of short-term bonds rising above the long-term paper it had invested in.
At the same time, rising rates made it hard for SVB's largely startup-focused base to secure favorable funding, accelerating withdrawals from the bank. Krugman said SVB sat on a lot of cash and put it into long-term securities which at the time offered a good return on investment. However, those returns fell as yields increased.
While this created huge problems for SVB, Krugman believed there was little chance of contagion to other banks. The Nobel Prize-winning economist said he did worry about the effects of SVB's collapse on the broader VC ecosystem."But — hoping these aren't famous last words — this looks at most like a fairly narrow sectoral crisis."
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Paul Wall announces partnership with Paul Masson BrandyH-town rap legend Paul Wall celebrates his birthday with the announcement of a new business partnership.
Leer más »
Loop bank robbery: Suspect shoots security guard at Fifth Third Bank in ChicagoNEW VIDEO: Chicago robbery suspect caught on camera leaving Loop bank with money in hand, as some cash is left behind, blowing in the wind
Leer más »
Silicon Valley Bank Rocked, Bank Shares PlummetA financial free fall is happening right now in the Bay Area. One of the most trusted local banks is in trouble and now there’s growing concern that some companies are withdrawing their funds, which could spell doom.
Leer más »
Bank stocks plunge after implosions at Silicon Valley Bank and SilvergateBank stocks plunge after implosions at Silicon Valley Bank and Silvergate Capital send 'shock waves' through the sector
Leer más »
Silicon Valley Bank drops another 45%, weighing on the bank sector againShares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again.
Leer más »
Silicon Valley Bank drops another 60%, weighs on the bank sector againShares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again.
Leer más »