Why Silicon Valley Bank’s ‘protected’ investments was an issue for banks and the Fed

Silicon Valley Bank’s collapse final Friday has uncovered a giant downside with “safe” securities purchased with authorities ensures throughout the pandemic.

In the wake of SVB’s implosion, the Federal Reserve needs to include potential dangers at different banks holding comparable securities by serving to them keep away from compelled asset gross sales, which might additional undermine confidence within the banking system.

Worries…