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 fails For more information on this episode click here. Sponsors Masterworks – invest in contemporary art Money for the Rest of Us Plus membership Show Notes Silicon Valley Bank launches $2.25bn share sale to shore up capital base by Joshua Franklin and Antoine Gara—The Financial Times US Bank Capital Regulation: History and Changes Since the Financial Crisis by John Walter—Economic Quarterly 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 How Silicon Valley Turned on Silicon Valley Bank by Ben Foldy, Rachel Louise Ensign, and Justin Baer—The Wall Street Journal SEC Filings Details—Silicon Valley Bank FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California—FDIC Uninsured Silicon Valley Bank depositors seek fire sale of assets by Joshua Franklin, Sujeet Indap, Colby Smith, and George Hammond—The Financial Times 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 Shares 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 Times Charles Schwab shares drop 12% even as the firm defends financial position by Yun Li—CNBC Related Episodes 405: When Volatility Spikes, Financial Things Break 392: What Is Money and How to Use It 305: 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.