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Showing posts from March, 2023

How the Silicon Valley Bank Failure is Impacting Interest Rates in Real Estate

  SVB Bank Collapse: What It Means for the Real Estate Market On Friday, March 10, 2023, Silicon Valley Bank (SVB) was shut down by regulators, marking the largest bank failure since the 2008 recession and the second-largest in U.S. history. The collapse of SVB is likely to dominate discussions on Capitol Hill this week, as lawmakers look to learn more about the bank failure and regulators seek to calm the banking industry. Reasons Behind the Collapse According to reports, the bank failed due to low diversification in investments, liquidity of assets issues, and this has raised concerns about the overall health of the banking sector. However, on Sunday, top financial officials announced that SVB depositors would have access to all their funds starting Monday, a move meant to calm markets ahead of this week's opening bells. No such assurances were made to shareholders of the bank. Government Response and Actions Lawmakers this week will likely have more questions about SVB's col...