Fed Was the ‘Culprit’ on SVB, Signature Bankruptcies, Wood Says

(Bloomberg) — It was Federal Reserve coverage, not crypto, which was the first offender within the bankruptcies of Silicon Valley Financial institution and Signature Financial institution, in response to Ark Funding chief Cathie Wooden.

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“In my opinion, Fed coverage was the first offender. Due to a VC funding drought and better yields on cash market funds, deposits left the US banking system,” Wooden says in a sequence of tweets.

Silicon Valley Financial institution’s fall final week was the largest US financial institution failure in additional than a decade. US authorities took extraordinary measures to shore up confidence within the monetary system, introducing a brand new backstop for banks that Federal Reserve officers mentioned was large enough to guard your complete nation’s deposits.

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