Silicon Valley Bank was taken over by regulators yesterday.
Only several years ago Silicon Valley Bank's market capitalization was close to 50 billion USD.
Silicon Valley Bank has 209 billion USD in assets.
Silicon Valley Bank has 150 billion USD + in deposits above the 250 000 USD mark, which is guaranteed by the Federal Deposit Insurance Commission, FDIC.
In my opinion, if these large scale depositors with 150 billion USD + in SVB, a large sum even for USA, are not made whole or paid in full or at least receive something like 86 % of their money back, financial contagion could quickly infect Wall Street money center banks, later Main Street and thereafter the whole world could experience a large scale financial and economic crisis.
Actually, a large part of Silicon Valley Bank's assets are in private assets, startups share participations making up a significant part, which are difficult and time consuming to turn into cash.
Regulators must act swiftly, decisively and efficiently, I think.
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