Economist Podcasts End run: Silicon Valley Bank
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Mar 13, 2023 
Alice Fullwood, Wall Street correspondent for The Economist, and Shashank Joshi, Defense editor, dive into the collapse of Silicon Valley Bank, discussing regulatory interventions and the risks of governmental involvement. They explore the implications of a new military alliance among America, Australia, and Britain, aimed at countering China's assertiveness. The conversation also touches on the legacy of Alamayu, an Ethiopian prince, and the ongoing debates surrounding cultural restitution and the return of looted artifacts.
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SVB Collapse
- Silicon Valley Bank (SVB), specializing in tech, collapsed rapidly, sending shockwaves through the business world.
- This failure, the second largest in US history, prompted regulatory intervention to prevent further contagion.
Rapid Collapse
- SVB's collapse unfolded quickly after announcing a need to raise capital due to bond losses.
- This spooked customers, leading to a massive $40 billion withdrawal attempt, prompting regulatory takeover.
Business Model Risk
- SVB's business model, heavily reliant on uninsured commercial deposits, made it vulnerable to bank runs.
- Unlike individual accounts, company deposits often exceed the insured amount, incentivizing rapid withdrawals.
