SVB collapse symptom of 'easy money' over systemic banking issues

Collapse is not an echo of 2008 - this time it is different

James Baxter-Derrington
clock • 7 min read

The collapse of Silicon Valley Bank is not an early indicator of a 2008-style economic crisis, experts have said, instead arguing the fall of the institution is a symptom of the end of a period of “free-and-easy money”.

While many have asked whether the largest bank failure since the Global Financial Crisis portends a second similar event, most argue the idiosyncratic nature of SVB's business is to blame for its collapse, rather than systemic issues in the banking situation. This morning (13 March), HSBC bought the firm's UK arm, purchasing SVB UK for £1, along with all its liabilities, a move which had been brokered with the support of Chancellor Jeremy Hunt and Prime Minister Rishi Sunak. As a result, all depositors of SVB UK had access to their deposits and banking services restored, with no taxpayer...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

More than half (57%) of UK investors said they were confident the worst of the economic turbulence from the past 18 months has now passed.

Investors still cautious despite predicting economic stability

'There is a sense that 2024 will bring a little more calm'

Laura Miller
clock 26 September 2023 • 1 min read
Partner Insight: Investor Archetypes

Partner Insight: Investor Archetypes

In this article, we outline four key personality archetypes that advisers will recognise among their client bases. We then explain how advisers can tailor their guidance to address the biases of each key archetype.

Embark Investments
clock 26 September 2023 • 7 min read
Bank of England

Bank of England holds rates at 5.25% after inflation falls

MPC in split decision after inflation unexpectedly fell in August

Valeria Martinez
clock 21 September 2023 • 3 min read