The Daily The Implosion of Silicon Valley Bank
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Mar 14, 2023 
Emily Flitter, a finance correspondent for The New York Times, provides insightful analysis on the dramatic collapse of Silicon Valley Bank, a pivotal player in the tech industry. She discusses the urgent implications for the banking sector and parallels to the 2008 financial crisis. The rapid growth followed by a liquidity crisis due to rising interest rates is dissected, alongside the panic it ignited among depositors. Flitter elaborates on government interventions to safeguard uninsured deposits and the broader consequences for the financial landscape.
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SVB's Risky Beginnings
- Silicon Valley Bank (SVB) started as a regional bank in the early 1980s with a venture capital arm.
- This allowed them to invest in tech startups, a risky practice unlike most conservative banks.
Deregulation Lobbying
- SVB's CEO, Greg Becker, lobbied Congress to roll back Dodd-Frank regulations for banks under $250 billion in assets.
- He argued these banks posed no systemic risk, enabling SVB's rapid growth.
SVB's Boom Times
- After deregulation, SVB experienced rapid growth, becoming a central player in the tech and venture capital scene.
- They even offered specialized services like winery financing, showcasing their focus on wealthy clientele.