The bank was using an incorrect model as it assessed its own risks amid rising interest rates, and spent much of 2022 under a supervisory review.
Category: Federal Reserve System
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Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems
The New York Times – Business: -
The Week in Business: A Banking Crisis
The New York Times – Business:Meta conducts another round of layoffs. Fresh inflation data shows price increases remain stubborn. And TikTok’s C.E.O. will testify before Congress this week.
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Banking Crisis Hangs Over Economy, Rekindling Recession Fear
The New York Times – Business:Borrowing could become tougher, a particular blow to small businesses — and a threat to the recovery’s staying power.
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Markets Worry First Republic and Other Banks Remain Under Pressure
The New York Times – Business:The nation’s top lenders banded together to rescue First Republic Bank. But markets worry that regional institutions remain under pressure.
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What Are Markets Saying About the World?
The New York Times – Business:Stocks, bonds and commodities markets are all sending different signals. While the S&P 500 actually rose this week, oil prices fell along with bond yields, signs that investors are worried about the economy.
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Fed Blocked Mention of Regulatory Flaws in Silicon Valley Bank Rescue
The New York Times – Business:Federal government officials wanted a joint statement to include a reference to regulatory shortcomings that they believe helped lead to the bank’s demise.
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Low Rates Were Meant to Last. Without Them, Finance Is In for a Rough Ride.
The New York Times – Business:Economists expected inflation and rates to stay low for years. With Silicon Valley Bank’s implosion, Wall Street is starting to reckon with how wrong that prediction has proved.
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Credit Suisse Shares Jump As Banking Backstops Go Global
The New York Times – Business:Bank stocks recovered after Credit Suisse secured a $54 billion lifeline from Switzerland’s central bank.
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Goldman Sachs Eyes a Big Payout from Silicon Valley Bank Deal
The New York Times – Business:The Wall Street giant is likely to be paid more than $100 million for its role in a bond purchase that ultimately failed to save the California bank from collapse.
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How Washington Decided to Rescue Silicon Valley Bank
The New York Times – Business:Officials were initially unsure about the need for the measures they eventually announced to shore up the financial system, but changed their minds quickly.
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Shares in First Republic and Others Rise After Federal Bank Rescue
The New York Times – Business:First Republic, Western Alliance and PacWest Bancorp shares were set to rise on Tuesday after one of the industry’s worst stock routs in years.