Member-only story
When Lehman Met Enron 2.0
From Sam Bankman Fried to the Great Silicon Valley Bank Collapse of 2023, the U.S. economy seems to be on a wild ride.
“BuzzFeed says most of cash and cash equivalents held at SVB,” reported Reuters on Monday, March 13. It was the last thing a beleaguered outlet like BuzzFeed needed on top of approaching penny stock territory.
“Startup-focused lender SVB Financial Group last week became the largest bank to fail since the 2008 financial crisis, sending shockwaves through the global financial system and prompting regulators to step in to contain the fallout,” continued Reuters.
BuzzFeed isn’t the only company hurt by the sudden and unexpected failure of Silicon Valley Bank. And the crisis may be far from over.
Moody’s has since cut the outlook for the U.S. banking system to negative, sending shockwaves throughout the global marketplace.
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report issued Monday.
“Banks with substantial unrealized securities losses and with non-retail and uninsured US depositors may still be more sensitive to…