What caused Silicon Valley Bank to collapse in only 44 hours, and how likely will the contagion spread leading to other bank failures?
Topics covered include:
- How losses on bonds blew up SVB’s balance sheet
- How is Silicon Valley Bank similar and different than other regional banks
- What the FDIC and Federal Reserve are trying do to restore confidence and stop bank runs
- How a weakening of the Frank-Dodd bank regulation act set the stage for SVB’s failure
- Why bailing out uninsured depositors is controversial
- Three scenarios of what might happen next
- Actions we can take to protect ourselves when private money fails
Show Notes
SVB’s 44-Hour Collapse Was Rooted in Treasury Bets During the Pandemic by Brian Chappatta—Bloomberg
Remarks by FDIC Chairman Martin Gruenberg at the Institute of International Bankers—FDIC
SEC Filings Details—Silicon Valley Bank
Join Statement by Treasury, Federal Reserve, and FDIC—Federal Reserve
FDIC Acts to Protect All Depositors of the former Silicon Bank, Santa Clara, California—FDIC
US regulators are setting a dangerous precedent on SVB by Sheila Bair—The Financial Times
Back-to-Back Bank Collapses Came After Deregulatory Push by David Enrich—The New York Times
Will another bank fall? by Robert Armstrong—The Financial Times
Charles Schwab shares drop 12% even as the firm defends financial position by Yun Li—CNBC
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Transcript
Coming Soon
Podcast episode 424 first draft transcript
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