All bank stocks are falling as a result of Silvergate fright
Deutsche Bank is down over 6% and HSBC is down over 5%
Contrary to chatter, Silvergate wasn't brought down by crypto, it was brought down by the collapse in bond values.
Instead of holding it's reserves in very short-term T-bills, it held them in longer term bonds, that it bought in 2020/21 when bond prices were higher. When the bank run happened, it had to liquidate those bond holdings at a loss.
How many other banks practised the same strategy? Wall Street fears all of them did, hence the tanking of bank share prices today.
As I wrote a couple of days ago, banks are struggling to attract regular savers, leaving them at the mercy of the money markets for their funding.
Silvergate is only a tiddler of a bank. If one of the bigger banks collapses, we're in a 2008 scenario - except this time governments are so indebted they might not be able to do bailouts.
The other thing that's different to 2008 is that bitcoin exists. Be your own bank!