Silicon Valley Bank: Wall Street reacts to biggest failure since 2008

SVB announced it was looking at putting itself up for sale after failing to raise new capital following steep losses on the sale of a bond portfolio that soured amid surging interest rates. Brian Levitt, global market strategist, Invesco

"Silicon Valley Bank and First Republic have emerged as the first cases of banks with business models and balance sheets that are ill-prepared for a rising interest rate environment and the ever-growing risk of a recession," Levitt told Insider. "Investors, smelling blood, then turn their attention to the next bank exposed to interest rate risk and specific credit risk, and then the next. First Republic Bank, which has significant exposure to the coastal real estate markets appears to be next on the list.""I see today's news as somewhat of a warning to the Fed that their actions have impact," Schutte told Insider.

"Importantly, we don't believe this is anything like 2008-09. The largest and most systematically important banks have been heavily regulated and stress tested for years. However, to me this is a warning to the Fed about the impacts on a forward basis that their aggressive rate hikes are having.""Regulators stepping in was a confirmation that the bank was dead or nearly dead.

"When you raise interest rates quickly, after 15 years of overstimulating the economy with near-zero rates, to not imagine that there's not leverage in every pocket of society that will be stressed is a naive imagining.""Often what we get from regulators, they close the barn door after the horses are out of the barn," Tengler told Insider."There's an element of that here. This shouldn't have been that difficult to catch sooner.

Seriously? The Fed wants the financial conditions to tighten.

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