Comment on the failure of the Silicon Valley Bank: In the blind spot – economy

If it’s true that every second start-up in the US has a banking relationship with Silicon Valley Bank, then the bankruptcy of the Californian bank will have consequences for America’s economy. After all, it is the biggest bank collapse since the financial crisis of 2008. How serious will it be? That depends on whether a buyer can be found for the bank quickly and whether the young companies concerned can find fresh money in other ways to pay their wages, salaries and office rent. And of course it depends on whether panicked customers will withdraw their money in droves from other banks, which hopefully won’t happen. In any case, the bank failure already caused shock waves on the financial markets around the world on Friday.