(Bloomberg) — According to Arch Investments head Cathy Wood, it was Federal Reserve policy, not crypto, that was the primary culprit in the bankruptcies of Silicon Valley Bank and Signature Bank.
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“In my view, Fed policy was the primary culprit. Due to the VC funding drought and high yields on money market funds, deposits left the US banking system,” Wood said in a series of tweets.
The collapse of Silicon Valley Bank last week was the biggest US bank failure in more than a decade. US officials took extraordinary measures to boost confidence in the financial system, introducing a new backstop for banks that Federal Reserve officials said was large enough to protect the entire nation’s deposits.
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