The Importance of Regional Banks in the US Economy

The problem stems from 2020 and 2021, where a lot of these banks built their entire business on this massive surge of deposits. Silicon Valley Bank was specifically was absolutely acting as if that was the case. And so a lot of regional banks have been sort of struggling with the fact that it was a one time distortion. There's a lot of trouble in commercial real estate that's only now being uncovered as the economy gets weaker.