The demise of Silicon Valley Bank wasn’t driven by credit problems but by an old-fashioned mismatch of assets and liabilities that doomed many thrifts back in the 1970s.

California regulators seized Silicon Valley Bank, whose parent is Santa Clara-based SVB Financial SIVB -60.41%  (ticker: SIVB), on Friday after a deposit run. It was the biggest bank failure since Washington Mutual in 2008.

 

U.S. stocks are poised for a higher open on Monday, as federal banking regulators announced SVB Financial SIVB –60.41%  depositors would be able to access all their money on Monday with no loss to taxpayers.

Futures were also rising ahead of the Labor Department’s highly anticipated February consumer price index on Tuesday and the producer price index for February on Wednesday.

Federal regulators have shut down Silicon Valley Bank, a big lender to start-ups in tech, after its parent company disclosed losses that raised fears about other banks and sent stocks tumbling across the industry.

Shares of SVB Financial Group (ticker: SVB), the lender’s owner, were halted Friday after plunging 60% on Thursday, dragged lower by what one analyst called a “stone anchor” of devalued securities. The bank’s deposits should go to other institutions, but that still leaves plenty of questions.

Source: Barron’s