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 … [Read more...]
305: Are Banks Safe?
Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase? Topics covered include What are collateralized loan obligations (CLOs), how are they structured, and what has been their historical default rates. How much exposure do banks have to CLOs and will it impact your bank savings and investments. What are bank capital ratios and how are they calculated. How banks are more conservatively run due to the adoption of the Basel III … [Read more...]
