Regional Banks Slammed by Fear of a Broader Financial Crisis

New York Times – In a story about the collapse of Silicon Valley Bank, Healthy Markets President & CEO Tyler Gellasch is quoted saying “Silicon Valley catered mainly to the technology start-up community, and Signature Bank was a big lender to New York’s legal and real estate industries. So even if their troubles didn’t pose a widespread systemic risk, the two banks were central enough to those industries that bank runs would be extremely destabilizing. If Signature happened in a vacuum, we probably don’t see this regulatory action,” Mr. Gellasch said. On each coast, we have bank failures that are uniquely focused on very wealthy and very connected industries.” (Full Story).

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