Wall Street financiers fear another banking crisis in the United States after the collapse of the Silicon Valley Bank (SVB), which provided loans to technology start-ups. On this background a lot of American banks also faced the fall of their own securities, and the urgent collection of the economic aid to the suffered SVB led to the growing panic among stock traders, informs Bloomberg agency.

In addition to SVB, Silvergate Capital Corp. also faced financial problems. The cost of its shares considerably decreased against the background of outflows of depositors and mass withdrawals of funds. However, in the future, a lot of other small and medium-sized players in the U.S. credit market may suffer a similar fate, the article specifies. We are also seeing problems with the S&P 500.

“One bank is winding down, the other is faltering, and Wall Street is asking if this is a crisis. The problem with both once-influential California lenders was an unusually fickle depositor base that was quickly withdrawing cash. But below that, there’s a crack that has engulfed finance: rising interest rates have left banks saddled with low-interest-rate bonds that can’t be sold in a hurry without a loss.”), the piece says.

In this situation, the risks for most American banks are growing. If there are too many customers at the same time, it could lead to a vicious circle. This scenario could deal a “terrible blow” to the entire U.S. banking sector, says Christopher Whalen, head of financial advisory firm Whalen Global Advisors.

“Silicon Valley Bank is just the tip of the iceberg. I’m not worried about the big guys, but a lot of the smaller guys are going to take a terrible hit. A lot of them are going to have to raise capital as a matter of urgency,” he cautioned.

On March 10, the Financial Times reported that four major U.S. banks lost more than $52 billion in market value in a single day amid financial woes at Silicon Valley Bank (SVB) in the United States. The organization was engaged in lending to technology start-ups, but the outflow of investors provoked a sharp fall in the value of its shares. As a result, JPMorgan Chase, Bank of America, Citigroup and Wells Fargo were forced to sell their own securities.

Earlier we reported that the head of Chevron noted fundamental changes in global oil and gas markets over the past year.