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Ep 389. Interest Rate Hike, Credit Suisse’s Failure, and Other Banking + Economic Risks on the Horizon

Focused Compounding

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Silicon Valley Bank's Volatility Issue

I think with the business miles Silicon Valley bank had, and the attitude that management had, they would always fail. It's not impossible to run a bank that way. Even if you look at something like Frost, there are potentials there,. If their energy business was really, really big, that it could be more volatile both in terms of what happened with loan stuff as we know from looking at energy companies. And so, your greatest safety is just the basic business model of what you have.

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