Bank Failures and Ramifications for the Banking Industry and Investors

News of the failing banks: Credit Suisse, Silicon Valley Bank (SVB), plus First Republic and Signature Bank, has sent shockwaves around the globe. With the closure – and now bankruptcy – of SVB being touted as “the biggest failure of a US bank since the global financial crisis”, the collapse of three US banks plus global banking giant Credit Suisse – all in little over one week – have justifiably shocked the banking and financial sectors. What suddenly happened to cause these banks to fail so dramatically? What’s next for the banking sector? And, for those investors who moved quickly to withdraw deposits or sell their shares before it was too late, the big question is: where can they safely invest their capital now?

There are three main questions to answer: What happened, and why? What effect are these failures having on our trust in the banking sector? What alternatives are there for investors now?

Continue reading “Bank Failures and Ramifications for the Banking Industry and Investors”