A look at Silicon Valley's very own banking crisis. From American public media, this is

Marketplace Tech. I'm Lille Gramale. Hard to believe it's already been a year, but this week marks the first anniversary of

the collapse of Silicon Valley Bank the largest bank failure in the US since the

2008 financial crisis.

S. V. wasn't just Silicon Valley Bank.

It was actually where Silicon Valley Banked.

Today, we're revisiting the S. V. collapse

with one of the foremost experts on bank failures, Anat Admati. CV

Svib collapse with one of the foremost experts on bank failures.

Anat Admari is a professor of economics at Stanford and co-author of the book

The Bankers New Clothes.

She says the moment that marked the beginning of the end for

S. V. was when the bank announced it needed to raise $2 billion in equity,

otherwise known as stock, to improve its financial position days before.

By the time the bank couldn't raise equity, there was no doubt at all that the bank is what's

called insolvent or a zombie, a living dead, that it hasn't defaulted yet on anybody, but it's unable to pay its debt, including

deposits. And the depositors, the clever people from Silicon Valley figured out this bank is bust their deposits

are above the deposit insurance limit and they wanted the money out and all of a sudden

because nowadays we have media and mobile app, you know, 42 billion dollar run on the bank on this

Thursday March 9th, 2023 and and at that point it was it was clear the bank was insolvent.

Everybody wanted their money out.

And the FDIC stepped in.

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