As the collapse of the high-tech lender continues to shake up markets around the world, Silicon Valley Bank and its top executives are starting to get sued.
In a shareholder class action suit filed in San Jose, CEO Greg Becker and CFO Daniel Beck are accused of hiding the fact that rising interest rates would make Silicon Valley Bank “especially vulnerable” to a bank run.
Shares of banks are falling all over the world because of what happened to SVB. This is causing a lot of trouble on the financial markets.
Even though Vice President Joe Biden tried to calm the markets yesterday, Moody’s has put six US banks at risk of being downgraded. These banks are First Republic, Western Alliance Bancorp, Intrust Financial Corp., UMB Financial Corp., Zions Bancorp., and Comerica.
The warning comes as the Financial Times reports that large US banks are getting a lot of requests from customers who want to move money from smaller lenders.
JPMorgan Chase, Citigroup, and Bank of America are some of the big banks that are trying to help customers move deposits quickly from Silicon Valley Bank and other regional lenders.
Several people who know about the matter told the FT that they are taking extra steps to speed up the normal sign-up or “onboarding” process.
In Europe and the UK, signs from the stock market suggest that the fallout from SVB may be leveling off, even though shares are still going down.
