Regulators designated SVB and Signature Bank as systemic risks. But are they really?

Mar 13, 2023
The collapsed banks were granted a "systemic risk exception," which means the Federal Deposit Insurance Corp. can guarantee uninsured deposits.
Though Silicon Valley Bank had assets of $209 billion, some economists question whether its failure presented "systemic risk" to the banking system or the economy.
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Bank rules rollback contributed to SVB's failure, critics say

Mar 13, 2023
The rollback of Dodd-Frank reforms exempted many of the country's largest banks from stricter regulations put in place after 2008.
Customers line up to retrieve funds from a Silicon Valley Bank in Santa Clara, California, on Monday. President Joe Biden partially blamed the rollback of Dodd-Frank banking regulations for SVB's failure.
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Banks will pay the cost of SVB's collapse, and maybe that's "how it should be"

Mar 13, 2023
As the government moved to backstop depositors affected by the collapse of Silicon Valley Bank and Signature Bank, surviving banks will end up footing the costs, says Laurie Stewart at Sound Community Bank in Seattle.
The federal government announced it would ensure that depositors affected by Silicon Valley Bank's collapse would be made whole. "I'm really happy for them," said Laurie Stewart. "But here's the thing: we're gonna pay for it. Banks are going to pay for it."
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How Silicon Valley Bank failed

Mar 10, 2023
The swift and chaotic failure of SVB left CEOs and investors unable to access their money. Should we be worried about contagion?
People line up outside the shuttered Silicon Valley Bank headquarters Friday in Santa Clara, California. With venture capitalists' accounts dwindling and its bond assets losing value, SVB suffered.
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Silicon Valley Bank is seized by U.S. after historic failure

Mar 10, 2023
The bank's failure arrived with incredible speed, with some industry analysts on Friday suggesting it was still likely a wise investment.
The Silicon Valley Bank headquarters in Santa Clara, California, on March 10.
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