Additionally, he sees a lower contagion risk due to federal regulators' emergency plan, announced Sunday by the Treasury Department, the Federal Reserve and the the Federal Deposit Insurance Corporation, to guarantee depositors' funds. The California-based commercial lender was a subsidiary of SVB Financial Group, and it was Silicon Valley's largest bank by deposits.įitz-Gerald doesn't see SVB's collapse and the crisis in the tech and crypto markets as mirroring 2008. at the start of last week - had been operational for 40 years and was considered a reliable source of funding for tech startups and venture capital firms. 'My contention is banking should be boring, a lot like watching paint dry - and any time it's not, you've got a problem.

'We had the Federal Board of Reserve change from fractional reserves to no reserves, and that let banks like SVB go out and start buying assets instead of simply loaning money,' he said.

'With regard to who's to blame here, I think that the greed and avarice that has long been present in Silicon Valley has come home to roost,' Keith Fitz-Gerald, a trader and principal of the Fitz-Gerald Group, told CNBC's Capital Connection on Monday. But the SVB crisis is far from an isolated incident, and its roots lie in a bigger systemic problem, many investors and analysts say. federal regulators said that all deposits will be made whole, in a relief to many depositors.

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