![]() High-profile entrepreneurs and investors, such as Mark Tluszcz and Bill Ackman, used Twitter to sound the alarm, urging customers to withdraw their money. Social Media Spreads Panic, Accelerating the CrisisĪ decision to raise funds through a sale of shares led to the withdrawal of $40bn (one-fifth of SVB’s deposits) within just a few hours. ![]() With the bank’s investments losing value, it struggled to meet these demands. Many of its customers were also affected by interest rate rises and needed to access their deposits for day-to-day business expenses. The bank’s troubles began when the Federal Reserve raised interest rates rapidly, resulting in the devaluation of bonds owned by SVB. SVB’s collapse was the second-largest bank failure in US history, and the first-ever “Twitter-fuelled bank run.” US authorities guaranteed all deposits in SVB and smaller bank Signature within 48 hours of the collapse, and the Swiss central bank provided Credit Suisse with a $54bn loan after its share price plunged.
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