Silicon Valley Bank had a huge outflow of deposits at the end of last year. Some startups were racing to take out cash because FDIC only ensures up to $250,000. Customers get worried a bank won't have enough money to cover deposits so they try and pool their money before everyone else does. SBB also held real estate loans on their books.
Let's talk about last week. The Real Deal’s Deconstruct explains the catalysts behind the collapse of Silicon Valley Bank and Signature Bank last week and the lasting impact on regional banks, real estate lending and the Fed’s next steps.
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