Banking Crisis triggered by the recent collapse of Silicon Valley Bank (SVB) with nearly $200 billion in uninsured deposits, the 2nd largest bank failure in U.S. history, has sent shockwaves through the financial industry. But according to sources close to the matter, the Federal Deposit Insurance Corporation (FDIC) has known about this looming crisis for…
The banking System in crisis might have felt like a sudden apocalypse that dropped out of nowhere, but the reality is far from it. It’s a consequence of several factors that brewed for years – like a perfect storm. Firstly, the economy was flooded with $4 trillion in printed stimulus, leaving moneybags feeling richer than…
Signature Bank (SBNY) began focusing on cryptocurrency in its final years, accepting customers from the industry in 2018. By 2021, the bank received over 16% of its deposits from the sector and held reserve monies from the Circle-managed USDC. This strategy proved risky and earned the bank the reputation of a “crypto bank”. Founder DePaolo…
The failure of SVB Financial has highlighted the potential risks associated with uninsured deposits and the need for effective regulation of the US banking system. The implications of this failure extend beyond the individual bank to the wider banking system and the economy as a whole. The concentration of deposits in a handful of systemically…