Three banks have gone bust in the last few days; the collapses started with Silvergate, followed by Silicon Valley Bank which became the USA's second largest bank failure in history, and now on Sunday, New York based Signature bank has had regulators take control.
Clearly this is serious and yet more banks will fail. I predicted this would happen. Back with GFC 1.0 there was little financial rigour put in place, goalposts were moved and institutions were rescued. The term 'too big to fail' became a thing. I complained loudly, saying where were my bargains? Governments propped up failure. That never leads anywhere and only causes more harm. And here we are.
Word is that SVB spent more time on trendy causes than actually paying attention to risk management. I can believe it. The other rumour is that Prince Harry and his wife have a lot of money deposited with SVB. We'll see, but don't be surprised if you see the pair suddenly head back to England and for King Charles to bail his son out. If this does happen, watch the reaction from the British subjects, the Coronation could end up being booed.
As the saying goes, we live in interesting times.
https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/