Fortune March 20, 2023

The Fed’s ‘stress tests’ were supposed to save banks from the exact crisis now engulfing markets. Here’s how they were so spectacularly wrong

Overnight, the top threat to America’s economic future is distilled in one ominous word, “contagion.” It’s the talk of the financial world that the quick, jarring jump in interest rates helped destroy Silicon Valley Bank by pounding the value of its bond holdings, leaving Big Tech’s onetime favorite lender short of the funds to cash out fleeing depositors. But all the midsize banks have also suffered big losses in the fixed-income

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