Executives Behind Failed Banks Tell Lawmakers Why The Companies Collapsed
View Source | May 16, 2023 3:52 pm
- Former executives from Silicon Valley Bank and Signature Bank told members of the Senate on Tuesday that their institutions failed as a result of panic from depositors.
- The implosion of Silicon Valley Bank, where the vast majority of account balances exceeded the $250,000 threshold backed by the Federal Deposit Insurance Corporation (FDIC), prompted the government-backed company to secure insured and uninsured accounts in early March to prevent additional bank runs.
- Signature Bank nevertheless collapsed days later, while other regional financial institutions continued to languish, and First Republic Bank, a third medium-sized institution, was sold earlier this month in a deal brokered by regulators.
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