Written By: Gurkomal Gill
While the market was fixated on the interest rate hikes, March 2023 began with a string of 4 back-to-back bank failures in the United States. After Washington Mutual’s fall in 2008, First Republic Bank, Silicon Valley Bank and Signature Bank collapses were the second, third and fourth largest banking collapses in US, respectively (1). Bank runs and liquidity troubles were the start of woes for these banks. The panic among investors and swift withdrawals exposed the underlying liquidity crisis. This article dives into the developments unique to each bank and explores the commonalities that led to the crises.