15-03-2023
Are More Bank Runs Coming? The Collapse of Silicon Valley Bank
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 sheetHow is Silicon Valley Bank similar and different than other regional banksWhat the FDIC and Federal Reserve are trying do to restore confidence and stop bank runsHow a weakening of the Frank-Dodd bank regulation act set the stage for SVB's failureWhy bailing out uninsured depositors is controversialThree scenarios of what might happen nextActions we can take to protect ourselves when private money failsFor more information on this episode click here.SponsorsMasterworks – invest in contemporary artMoney for the Rest of Us Plus membershipShow NotesSilicon Valley Bank launches $2.25bn share sale to shore up capital base by Joshua Franklin and Antoine Gara—The Financial TimesUS Bank Capital Regulation: History and Changes Since the Financial Crisis by John Walter—Economic QuarterlySVB's 44-Hour Collapse Was Rooted in Treasury Bets During the Pandemic by Brian Chappatta—BloombergRemarks by FDIC Chairman Martin Gruenberg at the Institute of International Bankers—FDICHow Silicon Valley Turned on Silicon Valley Bank by Ben Foldy, Rachel Louise Ensign, and Justin Baer—The Wall Street JournalSEC Filings Details—Silicon Valley BankFDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California—FDICUninsured Silicon Valley Bank depositors seek fire sale of assets by Joshua Franklin, Sujeet Indap, Colby Smith, and George Hammond—The Financial TimesJoin Statement by Treasury, Federal Reserve, and FDIC—Federal ReserveFDIC Acts to Protect All Depositors of the former Silicon Bank, Santa Clara, California—FDICUS regulators are setting a dangerous precedent on SVB by Sheila Bair—The Financial TimesBack-to-Back Bank Collapses Came After Deregulatory Push by David Enrich—The New York TimesWill another bank fall? by Robert Armstrong—The Financial TimesShares in US regional banks close sharply lower over fears of deposit flight by Jennifer Hughes, James Fontanella-Khan, Ortenca Aliaj, and Brooke Masters—The Financial TimesCharles Schwab shares drop 12% even as the firm defends financial position by Yun Li—CNBCRelated Episodes405: When Volatility Spikes, Financial Things Break392: What Is Money and How to Use It305: Are Banks Safe?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
