Is the collapse of the Silicon Valley Bank a harbinger for North Dakota?
According to news reports, the Silicon Valley Bank that collapsed in the last 48 hours had similar ratios as the Bank of North Dakota. Legislators need to ensure there is a plan to prevent problems.
(Note: this article is not meant to declare that there is a problem at the Bank of North Dakota, it is just to point out and reiterate the need for more scrutiny in light of current breaking news events nationally.)
Those who have been following national financial news coverage today know that the big story is the collapse of the Silicon Valley Bank.
According to the Associated Press quote: “The bank had $209 billion in assets and $175.4 billion in deposits as the time of failure, the FDIC said in a statement…Silicon Valley Bank on Thursday announced plans to raise up to $1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy. Shares of SVB Financial Group plunged 60% Thursday, and rocketed lower again Friday before the open of the Nasdaq where it is traded.”
Because deposits at a bank are actually liabilities (money they owe to the depositors) and assets are the loans and debt lent out that will generate revenue for the bank, t…
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