Elham Saeidinezhad, an assistant economics professor at Barnard College and NYU, dives into the evolving role of banks as they adopt hedge fund-like strategies. She discusses the fallout from the Silicon Valley Bank crisis and questions the lack of significant reforms. Elham highlights how recent regulatory relaxations have allowed banks to blend traditional lending with complex trading tactics, creating a new breed of 'synthetic hedge funds.' This shift raises critical concerns about risk management and regulatory frameworks in today's financial landscape.

Dr. Elham Saeidinezhad, a Term Assistant Professor of Economics at Barnard College and Market Structure Fellow at the Jain Family Institute, dives into the intriguing dynamics of banks functioning as synthetic hedge funds. She discusses the failures of Silicon Valley Bank, highlighting the role of interest rate swaps in its collapse. Elham also explores the complexities of private credit ETFs and the evolving relationship between banks and non-banking entities. Her insights shed light on the regulatory challenges and risks facing today’s financial markets.