Is it possible that something good will come from the run on Silicon Valley Bank, and the contagion spreading to other banks, such as Signature Bank and First Republic Bank (NYSE: FRC)? 1) Slower Pace Of Rate Hikes: One of Silicon Valley Bank’s problems stemmed from owning too many long bonds worth less than par value. Many young techs and other startups who are Silicon Valley Bank clients may not be what you imagine. These tech companies became clients of Silicon Valley Bank because their venture capitalists recommended the bank. Already, Silicon Valley insiders say small start-ups are getting calls to initiate potential acquisition talks.
Source: Forbes March 14, 2023 18:56 UTC