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718. News: The ultimate Silicon Valley Bank explainer

Fintech Insider Podcast by 11:FS

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Silicon Valley Bank - The Challenges of Investing in Securities

Banks in the US pulled in something like $2.4 trillion more in deposits during that three-year period than they would have expected to otherwise. A lot of money flowed from investors to venture capital firms, which then got poured into early-stage tech companies. Tech startups don't tend to make the best lending customers for a variety of reasons. And so, as the tech sector cooled off, those deposits just sort of burned away.

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