{"id":1875429,"date":"2023-03-13T09:28:05","date_gmt":"2023-03-13T13:28:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/svb-collapse-bank-fallout-shines-spotlight-on-620-billion-hole-in-banking-sector\/"},"modified":"2023-03-13T09:31:51","modified_gmt":"2023-03-13T13:31:51","slug":"svb-collapse-bank-fallout-shines-spotlight-on-620-billion-hole-in-banking-sector","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/svb-collapse-bank-fallout-shines-spotlight-on-620-billion-hole-in-banking-sector\/","title":{"rendered":"SVB collapse: Bank fallout shines spotlight on $620 billion hole in banking sector"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsvb-collapse-bank-fallout-shines-spotlight-on-620-billion-hole-in-banking-sector%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1875429&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"RichTextArticleBody-body\">\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\">\n<div id=\"Brid_78476531\" class=\"brid\" style=\"width:16; height:9;\" itemprop=\"video\" itemscope itemtype=\"http:\/\/schema.org\/VideoObject\">                <meta itemprop=\"name\" content=\"Tucker Carlson's Jan. 6 footage creates legal headache for DOJ prosecutions\">               <meta itemprop=\"description\" content=\"The release of new tapes from the Jan. 6 Capitol riot on Tucker Carlson's Fox News show could create a major legal headache for the Department of Justice's handling of cases against hundreds of defendants, according to legal experts. Since Carlson's debut of the footage, several other riot defendants who have yet to face a final judgment over their criminal cases have requested a delay in their trial in order to review the footage released from McCarthy that he said would be made available to all defendants.\">               <meta itemprop=\"duration\" content=\"PT1M35S\">               <meta itemprop=\"uploadDate\" content=\"2023-03-10 19:17:37\">               <meta itemprop=\"thumbnailURL\" content=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/03\/localimages\/1260458_th_1678476530.jpg640f24ea7b860.jpg\">               <meta itemprop=\"contentUrl\" content=\"https:\/\/cdn.brid.tv\/live\/partners\/19383\/sd\/1260458.mp4\">              <\/div>\n<p>               <script type=\"text\/javascript\"> var _bp=_bp||[]; _bp.push({ \"div\": \"Brid_78476531\", \"obj\": {\"id\":\"27789\",\"width\":\"16\",\"height\":\"9\",\"video\":\"1260458\"} }); <\/script>               <script type=\"text\/javascript\" async src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script>              <\/div>\n<\/p><\/div>\n<p><span class=\"ArticlePage-articleBody-firstLetter\">F<\/span>allout from the <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/us-officials-weigh-backstopping-silicon-valley-depositors\" target=\"_blank\" rel=\"noopener\">Silicon Valley Bank collapse<\/a> has directed attention to a $620 billion ticking time bomb in the <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/banking\" target=\"_blank\" rel=\"noopener\">banking system<\/a> that has the potential to spell doom for the financial system. <\/p>\n<p> SVB&#8217;s meltdown was partly caused by a chasm between its assets and what they were worth in the market. Eventually, SVB sold some of those assets, spooking investors and triggering a run on the bank. &#8216;But SVB isn&#8217;t alone, <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/united-states\">United States<\/a> banks were sitting on $620 billion in unrealized potential losses\u00a0at the end of last year, per <a class=\"Link\" href=\"https:\/\/www.fdic.gov\/news\/speeches\/2023\/spmar0623.html?source=govdelivery&#038;utm_medium=email&#038;utm_source=govdelivery\">the FDIC<\/a>.&#8217; <\/p>\n<p><b><a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/us-officials-weigh-backstopping-silicon-valley-depositors\" target=\"_blank\" rel=\"noopener\">SILICON VALLEY BANK COLLAPSE: U.S. OFFICIALS REPORTEDLY WEIGH BACKSTOPPING DEPOSITORS<\/a><\/b> <\/p>\n<p>That hole illustrates why authorities at the Federal Reserve, Treasury Department, and Federal Deposit Insurance Corporation were so eager to stave off contagion or panic spread from SVB&#8217;s demise across the banking sector. <\/p>\n<p>The reason for this predicament is that banks compiled a plethora of bonds and treasuries during times when interest rates were hovering near zero. But now, the Federal Reserve has begun jacking up rates in an effort to combat inflation, which has caused many of those assets to plunge in value. <\/p>\n<p>This is because higher interest rates mean that new bonds accrue higher rates of returns for investors. As a result, older bonds have comparatively lower rates of return, rendering them less desirable for investors and therefore triggering a plunge in the value of older assets. <\/p>\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">$620 billion of unrealized losses, overall equity 2.2 trillion. If a run on the banks would happen it could be fatal even for several large US banks like JP Morgan and Citi. This crisis isn\u2019t over. The US Treasury simply bought some time. <a href=\"https:\/\/t.co\/2xNvfIrN9b\">pic.twitter.com\/2xNvfIrN9b<\/a><\/p>\n<p>\u2014 Kim Dotcom (@KimDotcom) <a href=\"https:\/\/twitter.com\/KimDotcom\/status\/1635115443966058497?ref_src=twsrc%5Etfw\">Marc<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n<p><\/p>\n<hr>\n<p>&#8220;Read More From <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/silicon-valley-bank-collapse-spotlight-620-billion-hole\">SVB collapse: Bank fallout shines spotlight on $620 billion hole in banking sector<\/a>&#8221;<\/p>\n<hr>\n<p><span style=\"font-size:11px\"><em>&#8220;The views and opinions expressed here are solely those of the author of the article and not necessarily shared or endorsed by Conservative News Daily&#8221;<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fallout from the Silicon Valley Bank collapse has directed attention to a $620 billion ticking time bomb in the banking system that has the potential to spell doom for the financial system. SVB&#8217;s meltdown was partly caused by a chasm between its assets and what they were worth in the market. Eventually, SVB sold some &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1897043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[21456,5373,14689,7385,14552,14941,12368,5338,16758,21356],"class_list":["post-1875429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-21456","tag-bank","tag-banking","tag-collapse","tag-fallout","tag-hole","tag-sector","tag-shines","tag-spotlight","tag-svb"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1875429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1875429"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1875429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1897043"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1875429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1875429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1875429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}