The Sea Change of the Banking Sector in the First Quarter

The easy money environment of the last several years created conditions at Silicon Valley Bank that led to its demise. When things are easy, bad practices are engaged in and if you engage in bad practices in the good times, you're unlikely to get through the bad times unscathed. The speed at which markets move is much faster today than 10, 15 years ago. Nobody could predict what happened to Silicon Valley Bank, but it did and a $220 billion bank went down in three days. We saw that in a global financial crisis, obviously worse in the global financial crisis because that asset liability mismatch also came with very risky lending practices on top of it.