Asset Sell-Off

On March 16th, US Treasury Secretary Yellen said that banks in Silicon Valley had encountered a run, leading to liquidity problems; Silicon Valley banks have to sell assets, including treasury bond that have lost market value; What happened at the Bank of Silicon Valley will be carefully investigated. US Treasury Secretary Yellen: Will Carefully Investigate the Bankruptcy of Silicon Valley Banks Analysis based on this information:The recent comments from US Treasury Secretary Yellen regarding the liquidity issues faced by banks in Silicon Valley have raised concern about the stability of the financial sector in this region. It appears that multiple banks in the area have been struggling to meet their liquidity requirements, which has resulted in a run on these institutions. To address their liquidity issues, the banks in Silicon Valley have been forced to sell off their assets, including treasury bonds that have lost market value. This is a troubling development, as it indicates that financial institutions in this…