The Seen and the Unseen - hosted by Amit Varma cover image

Ep 323: SVB, Banking and the State of the Economy

The Seen and the Unseen - hosted by Amit Varma

CHAPTER

The Evolution of Financial Policy

The modern strategy works in two pieces. Step one, we have a creature called a Prudential Regulator who uses state power and coerces the bank into double quotes on acceptable levels of risk. Statistically, out of a thousand banks, 1 to 1.5% is 10 to 15 banks will go belly up in the next five years. The objective of Prudential Regulation is never to bring bank failure rates down to zero. Then you would just be having banks that take no risk at all.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner