The Collapse of Silicon Valley Bank: Causes and Consequences

This chapter examines the second largest bank failure in history, focusing on Silicon Valley Bank's mismatched investment strategies and its subsequent liquidity crisis. It explores the reactions of venture capitalists during the turmoil and the ethical dilemmas they faced, as well as the broader implications for depositors and the banking sector. The discussion highlights the potential systemic risks and political fallout that could arise from inadequate government support for smaller banks and depositors.