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Blackrock CEO Larry Fink, who runs the world’s largest money manager, warned of a “slow rolling crisis” following the Silicon Valley Bank collapse “with more seizures and shutdowns” possibly to come among regional banks.
Regional banks remain at risk of a “flameout” like the savings and loan crisis of the 1980s and early 1990s when more than a thousand institutions failed, Fink wrote in an annual letter to investors.
Whether the crisis brought on in part by rising interest rates will hit more banks remains unclear, said Fink referencing the failures of Signature Bank and Silvergate.
“It’s too early to know how widespread the damage is. The regulatory response has so far been swift, and decisive actions have helped stave off contagion risks,” he wrote.
