Fed Was the ‘Culprit’ on SVB, Signature Bankruptcies, Wood Says

(Bloomberg) — It was Federal Reserve policy, not crypto, which was the primary culprit in the bankruptcies of Silicon Valley Bank and Signature Bank, according to Ark Investment chief Cathie Wood.

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“In my view, Fed policy was the primary culprit. Because of a VC funding drought and higher yields on money market funds, deposits left the US banking system,” Wood says in a series of tweets.

Silicon Valley Bank’s fall last week was the biggest US bank failure in more than a decade. US authorities took extraordinary measures to shore up confidence in the financial system, introducing a new backstop for banks that Federal Reserve officials said was big enough to protect the entire nation’s deposits.