Dealbook by Andrew Ross Sorkin, NYT column sorry no link
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What’s next? Banks have already been building up liquidity — the Fed disclosed yesterday that it had lent $153 billion to banks through its discount window in the week ended Wednesday — but the likely prospect that credit ratings agencies will downgrade regional lenders’ debt will create more pressure to find additional capital.
One embattled regional bank, PacWest, is reportedly in talks with investment firms to do just that, according to Reuters.
- In other banking news: Peter Thiel, whose venture firm urged portfolio companies to withdraw their money from Silicon Valley Bank, had $50 million of his own money at the lender when it failed. Goldman Sachs reportedly weighed a takeover of S.V.B. in 2020. And here is why the lender’s collapse portends bad news for SoftBank, the Japanese tech investor.