Silicon Valley Bank

The United States experienced the second-largest bank collapse in its history on Friday as the Silicon Valley Bank (SVB) was taken over by the U.S. government. Signature Bank followed suit on Sunday, and more could follow.

Why: SVB is in a bit of a unique situation. It banks largely with tech start-ups. Over the last few years, deposits have exploded as these start-ups had more cash on hand. SVB had to do something with this money—it’s expected to generate a return and pay interest. The money came in too fast to loan out, so it bought safe U.S. Treasury bonds and other long-term assets.

Read more at “Are Woke American Regulators Endangering the World?”

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