Market Extra: Why Silicon Valley Bank’s ‘safe’ investments turned into a problem for banks and the Fed

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Silicon Valley Bank’s collapse last Friday has exposed a big problem with “safe” securities bought with government guarantees during the pandemic.

In the wake of SVB’s implosion, the Federal Reserve wants to contain potential risks at other banks holding similar securities by helping them avoid forced asset sales, which could further undermine confidence in the banking system.

Worries…

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