The former bank regulator who invented deposit networks just revealed why SVB's collapse was inevitable—and why the solution that could have saved them is finally being rebuilt.
Gene Ludwig ran the OCC during the Clinton administration, created a half-trillion-dollar market solving a problem his Aunt Betty faced riding buses between banks, then watched his invention fail to save Silicon Valley Bank because the technology, economics, and incentives were fundamentally broken.
Now he's partnered with Paolo and ModernFi to build what could become America's eighth systemically important financial utility: a bank-owned consortium that's signing 25 institutions per week and racing to protect the 4.8 trillion in uninsured deposits that make the next crisis inevitable.
Resources:
Follow Gene on LinkedIn: https://www.linkedin.com/in/gene-ludwig/
Follow Paolo on LinkedIn: https://www.linkedin.com/in/paolombertolotti/
Follow David on X: https://x.com/dhaber
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X: https://x.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Follow our host: https://x.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
Stay Updated:
Find a16z on X
Find a16z on LinkedIn
Listen to the a16z Podcast on Spotify
Listen to the a16z Podcast on Apple Podcasts
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
