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Silicon Valley Bank: What Happened and Why

Founder's Journal

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The Rise and Fall of Silicon Valley Bank

CNN's John Sutter takes a look at how Silicon Valley Bank got into this mess. He says banks are incredibly complex and important for any kind of capitalistic society to operate. Banks make money by borrowing from depositors, then lending it out in various ways like mortgages or buy-a-house loans. The idea is that the more people put their money in your bank, the more likely you are to be able to pay them back when they're repaid.

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