What were the causes of Silicon Valley bank collapse who will pay for the losses incurred, what are the implications for the entire banking sector and its depositors, and what is the proper policy response to reestablish trust in our banks? My guest today is Dr. However, the actual causes of Silicon Valley bank failure appear to be manifold having some features unique to its investor-focused business model while other systemic causes are shared by the entire banking industry. In the week following Silicon Valley Bank’s collapse politicians exploded the public anxiety to either create narratives of greedy executives exploiting lax oversight or else blaming capricious bank board members concerned with social justice than with financial prudence.

This bank failure nearly 15 years to the day after the collapse of Bear Stearns, the bank failure that trigger a global financial crisis, followed by a comprehensive raft of regulations known as Dodd-Frank, to limit the risk of future bank failures. Following rumors of potential insolvency and an attending run to withdraw uninsured deposits on March 10 the Federal Deposit Insurance Company FDIC stepped in and took control of Silicon Valley bank the 16 th-largest bank in the United States. This is Hubwonk, I’md Welcome to Hubwonk, a podcast of Pioneer Institute, a think tank in Boston. Book: U-Turn: America’s Return to State Healthcare Solutions.Pioneer Institute’s Life Sciences Initiative.Common Core National Education Standards.BOOK: A Vision of Hope – Catholic Schooling in Massachusetts.

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