The collapse of Silicon Valley Bank foreshadows a bigger reckoning for the tech industry

Tech Insider : Economy, Politics
A computer with the SVB logo exploding.
The destruction wrought by the collapse of Silicon Valley Bank could be a moment for the tech industry to take a step back and reflect on its problems. But sadly, it won't be.

iStock; Rebecca Zisser/Insider

More banks could soon fail - but that could end up being good news for stocks

Tech Insider

Good morning. I'm senior reporter Phil Rosen. 

As regional bank stocks tanked yesterday, contagion remains top of mind, and commentators are warning of more risks to the financial sector. 

Signature Bank in New York went under on Sunday. Other lenders also named Signature Bank are scrambling to let customers know they're still open for business.

Tech Insider
A woman leaves a branch of Signature Bank in New York, Monday, March 13, 2023.
Signature Bank, New York, was shut down by regulators on Sunday.

Seth Wenig/Associated Press

Sell any stock rebound resulting from banking-system intervention, Morgan Stanley CIO says

Tech Insider
Silicon Valley Bank failure
Silicon Valley Bank

NurPhoto / Getty

Regulators didn't have to shutter Signature Bank, says Dodd-Frank Act coauthor Barney Frank, who helped oversee the lender: 'We could've continued'

Tech Insider
Barney Frank
Barney Frank.

REUTERS/Jonathan Ernst

Paul Krugman says Silicon Valley Bank 'was a kind of affinity fraud a la Madoff' because it sold itself on false pretenses

Tech Insider
paul krugman
Paul Krugman.

REUTERS/Brendan McDermid

First Republic Bank's stock craters 75% after it taps backstop billions to shore up liquidity

Tech Insider
first republic bank
First Republic Bank

Justin Sullivan/Getty Images

Western Alliance shares plummet 80% as bank stocks take a beating after SVB's failure

Tech Insider
Western Alliance
Western Alliance Bank.

(Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

Silicon Valley Bank's issues were hiding in plain sight, and its collapse damages the Fed's reputation as a regulator, DataTrek says

Tech Insider
jerome powell
Federal Reserve Board Chairman Jerome Powell.

Yuri Gripas/Reuters

Sellers on eBay are trying to auction off Silicon Valley Bank-branded merch, including a cardboard box for $201 and a wine cooler for $42

Tech Insider
SVB-branded tumbler and cardboard box listed on eBay for auction.
A wine tumbler and cardboard box featuring the SVB logo were listed on eBay.

eBay

Subscribe to Banks