Banking Crisis 2023

There were many red flags before the California bank failed last week. Now the questions are: How did federal and state regulators assess the risks, and what actions did they take in response?

In the aftermath of the bank run, some investors blamed their counterparts for igniting panic.

Navigating challenges and what's ahead in banking regulation.

Startups from Silicon Valley to London, Tel Aviv and tech hubs across Africa depended on Silicon Valley Bank as a one-stop shop for everything, from holding their fortunes to personal mortgages. Now, the bank's failure has forced them to navigate a new world of banking just as the financial markets tip into chaos.

Shares of First Republic slumped by as much as 26% Wednesday, with other regional banks also lower in another volatile day of trading.

Justice Department investigators were examining whether the New York bank took sufficient steps to detect potential money laundering by clients.

The Arkansas congressman, a leading Republican on the House Financial Services Committee, said while he doesn't believe blanket expanding deposit insurance is warranted, different premium structures for covering deposits would be "worthwhile."

After two high-profile failures and a liquidity scare, money is on the move from collapsed and suspect banks to destinations viewed as safer havens. Some banks say they're in position to score fresh funds, new customers and talented workers.

After the failure of two banks between $100 billion and $250 billion of assets, many are asking regulators to change their oversight practices for these banks. The Fed has a wide berth to make a wide array of changes.

Depositors' trust in their banks — and banks' trust in their customers — is the cornerstone of finance. The demise of Silvergate, Silicon Valley and Signature has demonstrated how fragile that trust can be, and how difficult it will be for regulators and bankers to win it back.

Analysts are increasingly focused on rising office property vacancy rates, driven by remote-work trends and higher costs of living. They are worried that cash-strapped landlords could default on loans and cause losses in banks' CRE portfolios.

Maxine Waters, the top Democrat on the House Financial Services Committee, says she's confident some of the issues surrounding the failures of Silicon Valley Bank and Signature Bank will require legislation.

Micro-merchants that sell on Etsy and Shopify were briefly unable to accept payments — an issue that could have been catastrophic had it lasted longer.

Mercury, NorthOne and other challenger banks that serve small business owners are seeing a boost from SVB's collapse. But the effects may be short-lived.

Many banks whose shares got hammered a day earlier rebounded strongly, with double-digit gains at Western Alliance Bancorp, First Republic Bank and PacWest Bancorp in midafternoon trading.

The recent bank failures have changed market thinking about the Federal Reserve's next move.

According to a New York state Department of Financial Services official, the bank failed to provide 'reliable and consistent' data.

Sen. Elizabeth Warren, D-Mass., said that former Silicon Valley Bank CEO Greg Becker's assurances to Congress about the bank's safety in 2015 "now look nefarious."

Some tech startup clients had to scramble to retrieve money as the bank was closing. Many wonder which financial institution will fill the void. 

The loan portfolio is seen as an attractive buy and was not a contributing factor in the bank run that caused Silicon Valley Bank's demise.