Investor Presentaiton
YUNLI626
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SIGNATURE BANK
THE MOST RECENT SHOCKS COULD ESCALATE THE RISK
SVB Collapse and Closing Signature Bank in the US Illustrates Some Unintended Consequences of Fast Liquidity Tightening
SVB & Signature Banks' Chain of Events
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160
Hugh Son
Rohan
JONATHANVANIAN
FINANCE
Here's how the second-biggest bank
collapse in U.S. history happened in
just 48 hours
PUBLISHED FRI, MAR 10 2023-3:59 PM EST I UPDATED FRI, MAR 10 2023-8:38 PM EST
HUGH SON BROGOSWAMI Jonathan Vanian
Finance & economics | Signature policy
America's government steps in to
protect depositors at Silicon Valley
Bank
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SHARE f
in ☑
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лл
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60
As SVB and a rival collapse, regulators have expanded their role as a backstop
40
MARKETS
Regulators close crypto-focused
Signature Bank, citing systemic risk
PUBLISHED SUN, MAR 12 2023-6:24 PM EDT I UPDATED SUN, MAR 12 2023-8:01 PM EDT
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0
Yun Li
SHARE
in
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Increased
Client
Deposits
in SVB
due to
tech
companie
s boom
SVB
invested in
low risk
assets (eg
UST &
MBSS)
Value of
SVB
investment
fell as
interest rate
increases
Surge of
withdrawals
as private
fundraising
becoming
costly
-MOVE Index
-VIX Index (RHS)
Global Volatility Index
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Client
confidence
plunged &
induce panic
SVB face
liquidity
issue &
collapse
Joint
Responses
by US
Treasury,
The Fed, &
90
80
The US Bond
and Stock
when
70
Market began
60
50
to show
increased
volatility after
the February
40
FOMC and the
30
volatility is
seemed to
20
10
0
increasingly
escalated since
the beginning
of March
Jan-23
Feb-23
Mar-23
10
FDIC
RADARA DANA RAECEView entire presentation