SVB's collapse was fueled by 'people on iPhones' and won't spread across the US banking sector, Blackstone CEO says
The troubles that brought down Silicon Valley Bank were sparked by high interest rates and new technology that means bank runs can gather pace faster today, according to Blackstone's CEO Steve Schwarzman.
That means the recent banking turmoil is unlikely to snowball into a broader crisis across the US financial sector, he told "The banking system is not in any type of conventional crisis," the billionaire businessman said."We have just an interim issue with interest rates being up and we have a deposit issue caused by technology."
"And these are both solvable problems for the vast number of banks," added Schwartzman, who leads the biggest private equity firm in the world with $975 billion assets under management. earlier this month sparked a selloff in stocks of regional US banks, fueling fears that its failure would develop into a broader crisis., with CFRA saying the sharp falls represent a severe discount on some great banks.. When borrowing costs rise, bond prices tend to fall because investors can get a better return from parking their cash in savings accounts.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
STOCK MARKET NEWS: Alibaba split, Lyft’s new CEO, SVB hearings, Walgreen’s, Micron reportInvestors will monitor the first Silicon Valley Bank hearing, Jack Ma’s Alibaba is restructuring, Lyft gets new CEO and Walgreen’s, Micron report. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Read more »
SVB collapse caused by ‘textbook case of mismanagement,’ Fed official saysHearings this week will examine the collapses of Silicon Valley Bank and Signature Bank and the government’s response.
Read more »
Senate holds its first hearing into SVB and Signature Bank failuresThe Banking Committee is set to hear from three key regulators Tuesday after the collapse of Silicon Valley Bank and resulting turbulence in the financial sector.
Read more »
Joe Biden's handling of SVB collapse sounds alarm bells with votersA majority of 70 percent of Americans think it's the government's responsibility to prevent bank failures like SVB's.
Read more »
Fed official: SVB itself was main cause of bank's failureWASHINGTON (AP) — The nation's top financial regulator is asserting that Silicon Valley Bank's own management was largely to blame for the bank's failure earlier this month and says the Federal Reserve will review whether a 2018 law that weakened stricter bank rules also contributed to its collapse.
Read more »
SVB hearing live updates: Senators grill Fed, FDIC and Treasury over bank failuresThis is CNBC's live blog tracking Tuesday's hearing on the collapse of Silicon Valley Bank and other lenders before the Senate Banking Committee.
Read more »