Wall Street titans warn of crisis following Silicon Valley Bank collapse

a { color: #880000 !important; background: #ffeeee !important; } Wall Street titans warn of crisis following Silicon Valley Bank collapseBusiness > FinanceThe collapse of Silicon Valley Bank (SVB) has raised concerns of a crisis in the global financial sector, with warnings from business luminaries including Larry Fink, Ray Dalio, and Carl Icahn. The CEO of BlackRock, Larry Fink, raised the possibility that the current upheaval caused by SVB's failure could be the start of a 'slow-rolling crisis' similar to what transpired during the savings and loan crisis of the 1980s and early 1990s. Fink added that markets are currently paying the prices for 'years of easy money' following the Federal Reserve's series of sharp interest rate hikes over the last years. The failures of not only SVB but also fellow US lenders Signature and Silvergate have prompted jitters across global markets. Fink described the situation as the 'price of easy money' that was having to be paid after the Federal Reserve's decision to start aggressively raising interest rates. Fink also predicted that inflation would persist and rates continue to rise, trends that both contributed to SVB's colla

What's happened

Wall Street titans warn of a crisis brewing in the global financial sector following the implosion of Silicon Valley Bank.

Why it matters

The warnings from business luminaries including Larry Fink, Ray Dalio, and Carl Icahn come as the collapse of SVB and signs of trouble at Credit Suisse reignite fears of global contagion - even as economies contend with slowing growth and lingering inflation. The collapse of SVB has raised concerns of a crisis in the global financial sector, with warnings from business luminaries including Larry Fink, Ray Dalio, and Carl Icahn. Fink described the situation as the 'price of easy money' that was having to be paid after the Federal Reserve's decision to start aggressively raising interest rates. Fink also predicted that inflation would persist and rates continue to rise, trends that both contributed to SVB's collapse.

What the papers say

The Guardian, NY Post, Reuters

How we got here

The failures of not only SVB but also fellow US lenders Signature and Silvergate have prompted jitters across global markets. The CEO of BlackRock, Larry Fink, raised the possibility that the current upheaval caused by SVB's failure could be the start of a 'slow-rolling crisis' similar to what transpired during the savings and loan crisis of the 1980s and early 1990s. Fink added that markets are currently paying the prices for 'years of easy money' following the Federal Reserve's series of sharp interest rate hikes over the last years. Fink also predicted that inflation would persist and rates continue to rise, trends that both contributed to SVB's collapse.