Recently The failure of Silicon Valley Bank (SVB). It became one of the largest bank failures in the US since the global financial crisis. SVB’s volatility is based on a large amount of uninsured deposits, with another large amount of deposits invested. Held-to-maturity securities. While some would like to attribute SVB’s failure to the Trump administration’s Dodd-Frank resort, others say the failure was due to the bank’s management’s misguided decisions. Unfortunately, with interest rates and other inflationary issues on the rise, SVB is not the only bank facing the fragility and disproportionate impact on consumers and businesses. Additional regional financial institutions such as First Republic Bank also had depositors Bail is out. At JPMorgan Chase, and most recently Pacific Western, which now needs a similar source of funding to keep operations going. In the midst of these downturns, tech companies have become vulnerable to such volatility, especially those that hold large amounts of their assets or access to capital in these banks.
In this episode of the TechTank podcast, co-host Nicole Turner Lee is joined by Aaron Klein, the Miriam K. Carliner Chair in Economic Research and a senior fellow at the Brookings Institution’s Center for Regulation and Markets. They discuss how the technology sector has been impacted and what the future of banking looks like as the United States tackles rising inflation and interest rates.
You can listen to TechTank Podcast Here, on Apple, SpotifyOr Acast.