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SVB Collapse Was Special Case
- Silicon Valley Bank's collapse was a special case due to concentration in volatile sectors and region.
- Its rapid deposit growth and sector focus made it unlikely to be the start of widespread failures.
Banks' Inherent Risks Explained
- Banks inherently face risk from asset-liability mismatches and leverage.
- Trust is crucial since banks can't have liquidity for all depositors simultaneously.
Northern Rock Bank Run Experience
- Howard Marks recounted moving funds from Northern Rock during 2007 crisis due to withdrawal penalties.
- This experience showed how withdrawal penalties can contain bank runs unlike SVB's penalty-free withdrawals.