Welcome back to the Tim Blocks podcast. This is Brian Anderson, the editor of City

Journal. Joining me on the show

today is Nicole Jelineas. She's been on the show a number of times. She's a senior fellow

at the Manhattan Institute, a contributing editor of City Journal. And as a former business

journalist, I think she'll be well placed to discuss today's topic. She's a New York Post-Colonist, author of the book

After the Fall, Saving Capitalism from Wall Street and Washington, and a forthcoming book on

transportation. Today, though, we're going to discuss her City General P's Brobank Blues

and the current turmoil in the banking industry. So Nicole, thanks very much,

as always, for joining us. Thank you for having me, Brian. So as everybody, you know, follows these

things knows by now. Silicon Valley Bank, which was a mid-sized bank with clients that included, you know, basically,

I think, half of all U.S. venture capitalist-backed technology firms collapsed when it couldn't

meet the demands of large depositors who were rushing to withdraw their money.

The Federal Deposit Insurance Corporation then stepped in.

It closed the bank.

And then days later, New York City's signature bank, another institution that catered a lot to the tech sector,

you know, failed as well.

So SVB's collapse was the largest since the 2008 financial crisis. So let's look at that.

Why, you know, in as clear a way as possible, did this bank fail? Well, why did the bank fail is a question that has several answers.

The immediate answer is because they didn't manage their risk very well.

So what does a bank do?

A bank borrows money from its depositors.

You deposit money at the bank, as everyone knows from watching it's a wonderful life. The bank doesn't just keep your money in a pile at the bank.

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