300 Billion Reasons Why SVB Contagion Is Spreading To The Broader Banking System
- 300 Billion Reasons Why SVB Contagion Is Spreading To The Broader Banking System
by Tyler Durden, https://www.zerohedge.com/
Update 12:00pm ET: Silicon Valley Bank has been shuttered by California regulators, who have appointed a receiver (more here).
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All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
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This will hardly boost depositor confidence in other small banks and, by extension, big ones.
For those who slept through yesterday, here is what you missed and why the US banking system is suffering its worst crisis since 2020. Silicon Valley Bank, aka SIVB, the 18th largest bank in the US with $212 billion in assets of which $120 billion are securities (of which most or $57.7BN are Held to Maturity (HTM) Mortgage Backed Securities and another $10.5BN are CMO, while $26BN are Available for Sale, more on that later )…
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read more.
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