4min chapter

The New Liberal Podcast cover image

How Silicon Valley Bank Collapsed ft. Joseph Politano

The New Liberal Podcast

CHAPTER

Silicon Valley Bank

In 2020, when nobody could leave their home, tech stocks exploded and the tech sector exploded. Silicon Valley bank did like niche things, try to cover this. You do mortgages to very wealthy founders. You do lending against a startup debt in a very boutique way. But fundamentally, no matter what they could do, they couldn't come to a situation where they're lending as much as they have in deposit. They decide to take a big bet on duration - buy really safe assets that have longer maturities.

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