In the middle of last week, Moody’s Investors Service warned SVB Financial Group, the parent company of Silicon Valley Bank, of worrying developments as the financial ratings agency prepared to downgrade the bank’s credit rating.
The phone call, described by two people with knowledge of the situation, sparked yesterday’s spectacular bank collapse, the worst since the 2008 financial crisis.
Yesterday’s financial collapse of SVB caused concern in international markets, hitting the bank’s stock prices.
Investors are concerned that the weakness of the US banking system could be exposed by the Federal Reserve’s high interest rate policy to fight high inflation.
Source: Reuters, APE-MPE.
Source: Kathimerini
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.