Unlike last year's collapse of FTX, cryptocurrency did not play a leading role in the collapse of Silicon Valley Bank and Signature Bank, experts tell ABC News.
and Signature Bank -- representing the second and third largest bank failures in U.S. history -- has renewed lingering questions about what role cryptocurrency is playing in financial sector failures.
MORE: After the fall of Silicon Valley Bank and Signature Bank, here are tips to keep your money safe Boston College law professor Patricia McCoy said the bank's collapse was hastened by its large holdings of the cryptocurrency USDC, which is managed by the financial technology company Circle Internet Financial.Chine Nouvelle/SIPA/Shutterstock
On the recent deregulation of banking, Yermack pointed to the banks' investment of large amounts of capital into Treasury bonds, which are typically very safe. However, said Yermack, "because interest rates changed a lot in the last year or so, those bonds lost value -- and under the accounting rules, the banks could still count them at 100 cents on the dollar."
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Silicon Valley Bank and Signature Bank Reignite ‘Moral Hazard’ Dilemma Bitcoin Was Designed to EndA debate from the 2008 financial crisis resurfaces as the FDIC intervenes to help two troubled institutions with crypto connections.
Leer más »
Why Did Silicon Valley Bank and Signature Bank Fail So Fast?A professor of economics explains why the country's banking crisis isn’t over yet.
Leer más »
Why regulators seized Signature Bank in the third-biggest bank failure in U.S. historyRegulators announced late Sunday that Signature Bank was being taken over to protect its depositors and the stability of the U.S. financial system. The sudden move shocked executives of the institution, board member and former U.S. Rep. Barney Frank said.
Leer más »
Bank debt swoons as Fed moves to contain fallout from SBV, Signature Bank collapsesBonds issued by banks and other U.S. financial institutions are feeling the heat from the collapse of sudden California's Silicon Valley Bank and Signature...
Leer más »
KPMG stands by audits of Silicon Valley Bank and Signature Bank - FTKPMG's U.S. boss, Paul Knopp, said the accounting firm stood behind its audits of Silicon Valley Bank and Signature Bank , the Financial Times reported on Tuesday.
Leer más »
Taylor: What happened — and didn’t (hint: no B-word) — and what you should know about bank meltdownsThe FDIC guaranteeing deposits for Silicon Valley Bank and Signature Bank isn’t a bailout; it’s the U.S. honoring a guarantee. Bank shareholders are being wiped out.
Leer más »