Analysis: Silicon Valley Bank collapse has echoes of 2008. Here’s why things are different this time

is rattling markets and raising uncomfortable questions: Will it undermine the broader banking system and start a new meltdown?collapse“The risk of failure and deposit losses here is that the next, least well-capitalized bank faces a run and fails, and the dominoes continue to fall,” Ackman wrote on Twitter.

There’s also less anxiety about the stability of the banking sector due to the significant regulatory reforms put in place after the crisis in 2008. SVB put the bonds up for sale as customers, facing leaner times, pulled their money from the bank. Shares of SVB plunged 60% on Thursday. Trading in the stock was halted Friday amid reports that the bank, unable to raise all the money it needed, was hunting for a buyer.

While their shares stabilized on Friday, smaller banks continued to suffer. An exchange-traded fund tracking regional banks, the SPDR S&P Regional Banking ETF, was down more than 6%. Banks in Europe were also hit.Other lenders with highly specialized clientele could come under pressure. Crypto-focused lender Silvergate said Wednesday that it wasBut the risks of broader contagion are thought to be limited for now.

In 2008, it was also “different this time”

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