Within days, regulators were forced to seize the bank in the second-largest bank collapse. Regulators closed Signature Bank just two days later — making it the third-largest bank collapse in America.
Although the prevailing narrative was that Silvergate Capital was winding down its bank operations due to crypto investments and SVB was the bank of choice for startups and VCs, bank failures are more common than you think.
On Sept 2022, the Federal Reserve Bank of Kansas City highlighted the unrealized loss positions in community banks due to the rising interest rate environment. The declining tangible equity capital ratios could spell trouble for the smaller banks.