March 16, 2023
(Bloomberg) - It was Federal Reserve policy, not crypto, which was the primary culprit in the bankruptcies of Silicon Valley Bank and Signature Bank, according to Ark Investment chief Cathie Wood.
“In my view, Fed policy was the primary culprit. Because of a VC funding drought and higher yields on money market funds, deposits left the US banking system,” Wood says in a series of tweets.
Silicon Valley Bank’s fall last week was the biggest US bank failure in more than a decade. US authorities took extraordinary measures to shore up confidence in the financial system, introducing a new backstop for banks that Federal Reserve officials said was big enough to protect the entire nation’s deposits.
By Janine Phakdeetham
