How one bank’s collapse reflects a broader anxiety in Silicon Valley
Posted on AllSides March 16th, 2023
From The Left
OPINION
Most Americans were probably familiar with Lehman Brothers when the storied investment house collapsed in 2008, a victim of bad bets on soured mortgage-related investments.
But relatively few would ever have heard of Silicon Valley Bank, the country’s 16th largest before it was seized Friday by the Federal Deposit Insurance Corporation, a banking regulator.
Silicon Valley Bank’s demise on one level is a straightforward tale of a financial screwup. A massively bad bet on interest rates caused painful paper declines in its investments, forcing the bank to sell securities at...
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