Bankman-Fried has been charged with 12 counts of fraud, stemming from the collapse of his crypto empire, the cryptocurrency exchange FTX, and its sister company, Alameda Research.
Banking crisis feared
The collapse of these two banks has raised concerns about the stability of other U.S. banks.
Economist Peter Schiff has warned that the U.S. banking system seems on the verge of a much bigger collapse than in 2008.
Banks own long-term paper at extremely low-interest rates and can’t compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields could result in a wave of bank failures.
Goldman Sachs analysts take the opposite view. They are telling investors to take advantage of the fallout from the collapse of Silicon Valley Bank. And say the contagion is unlikely to spread from small regional lenders.
