1,2,3 bank failures: quick recap of what happened
Lot of good analyses have dissected what happened to the three tech and VC-friendly banks, Silvergate Bank (SI), Silicon Valley Bank (SIVB), and Signature Bank (SBNY) that were successively shut down by the banking authorities in the past seven days.
A summary would read: some of the consequences of 14 years of Fed fund rates standing below 2.5% (and during many of these years close to zero) have been poor risk management in the least-regulated areas of finance and investment, combined with unrealized asset value growing increasingly at-odds with fundamental value.
The [jump from 0% to 4.5-4.75% in the US Federal fund...