WTH Happened at Silicon Valley Bank? with Mike Konczal
Silicon Valley Bank’s recent failure marked the second-largest bank failure in U.S. history and the largest since the 2008 financial crisis. The run on the bank sent shockwaves through the financial world. Nearly 94% of its total deposits were uninsured, according to S&P Global Market Intelligence data as of year-end 2022. The series of events leading to its demise have been described by some as the perfect storm. Was it the result of Trump-era rollbacks of Dodd-Frank regulations, increased rate hikes, insufficient risk management, or a combination of factors? Mike Konczal is director of macroeconomic analysis at the Roosevelt Institute, where he focuses on economics, inequality and the role of public power in a democracy. He’s also the author of the book “Freedom from the Market” and a co-author, with Joseph Stiglitz, of “Rewriting the Rules of the American Economy.” He joins WITHpod to break down what happened to SVB, FDIC intervention, what made the financial institution so peculiar, what its failure says about the state of the economy and more.