Decoding Silicon Valley Bank's Demise with its Former CEO Ken Wilcox

Many people still remember Silicon Valley Bank's sudden collapse affected a significant number of technology companies, including the stablecoin platform Circle, which had $3.3 billion in cash reserves deposited at SVB.

In this episode, I sit down with Ken Wilcox to understand the root causes of Silicon Valley Bank’s downfall and some lingering questions, e.g. why all the lines of defense failed, and why regulators were not more forceful despite being aware of the warning signs.

Ken Wilcox was the CEO of Silicon Valley Bank (SVB) from 2001 to 2011, then the CEO of SVB's joint venture with Shanghai Pudong Development Bank (SPDB-SVB) in Shanghai until 2015, followed by four years as its Vice Chairman.

He is the author of "Leading Through Culture: How Real Leaders Create Cultures That Motivate People to Achieve Great Things" and The China Business Conundrum (Wiley, 2024)

Ken’s Substack Musing on the Middle Kingdom and More

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Show notes

-Introduction

-Understanding loan-to-deposit ratio

-Impact of COVID-19 on Silicon Valley Bank

-Problem of excess Deposits

-Long-term Treasury Bonds

-Bank run and social media

-Reflections on failures across all lines of defense

-Importance of banking culture and risk control

-Alternatives to Silicon Valley Bank and the joint venture in Shanghai

-Conclusion and new book announcement