Silicon Valley Bank Failure Roils Tech and Finance Industries

KQED's Forum

KQED

Politics, News, News Commentary

4.6 • 656 Ratings

🗓️ 14 March 2023

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

After experiencing a classic bank run with depositors withdrawing $42 billion in one day, Silicon Valley Bank was shut down by federal regulators on Friday. For many startups, SVB was the bank of choice, and its closure has roiled the tech industry. While federal regulators announced on Monday that 100% of Silicon Valley Bank’s deposits would be repaid, that has not stopped turmoil in the market. Shares in San Francisco-based First Republic Bank dropped over 60% on Monday with other bank stocks following suit. Added to this are last week’s failures of both Signature Bank, a regional bank in New York closed by regulators this weekend, and Silvergate, a banking concern favored by cryptocurrency investors. We’ll talk about how these banking issues are impacting the Bay Area and what it means for customers and the tech industry. Guests: Natasha Mascarenhas, senior reporter, TechCrunch Mark Calvey, senior reporter covering banking and finance, San Francisco Business Times Margaret O'Mara, historian of the modern United States, University of Washington - She writes and teaches about the growth of the high-tech economy, the history of American politics, and the connections between the two. Lizette Chapman, reporter, Bloomberg Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Support for Kikiwedi Podcasts comes from Rancho LaPuerta, boated the number one wellness resort and spa by readers of travel and leisure magazine. In August, three or four people sharing a cassida enjoy special vacation packages. Rancho LaPuerta.com
0:15.6	Support for Forum comes from Broadway SF, presenting Parade, the musical revival based on a true story.
0:23.0	From three-time Tony-winning composer Jason Robert Brown comes the story of Leo and Lucille Frank,
0:29.6	a newlywed Jewish couple struggling to make a life in Georgia. When Leo is accused of an
0:35.3	unspeakable crime, it propels them into an unimaginable test of faith, humanity, justice, and devotion.
0:43.3	The riveting and gloriously hopeful parade plays the Orphium Theater for three weeks only, May 20th through June 8th.
0:51.7	Tickets on sale now at Broadwaysf.com.
0:56.6	From KQED.
1:13.0	From KQED in San Francisco, I'm Alexis Madrigal.
1:15.5	Silicon Valley Bank was not a normal bank.
1:20.6	It had experienced wild growth, quadrupling deposits over the pandemic tech boom years.
1:25.5	The bulk of other people's money that the bank was holding came from startups and tech people.
1:28.1	When a startup raises millions of dollars, it needs to park it somewhere. That somewhere became, quite often, Silicon Valley Bank. All that tech business
1:33.2	had made the company the 16th largest bank in the country and the one financial institution
1:37.8	most associated with the vaunted Bay Area Innovation ecosystem. And then, over the course of maybe
1:43.7	48 hours, it all went poof. hit by a panic-fueled bank
1:46.8	run.
1:47.1	It was taken over by regulators on Friday morning.
1:49.5	There's a plan to make all depositors whole, but what happens now?
1:52.4	We find out after this news.
2:00.6	Welcome to Forum. I'm Alexis Madrigal. It all happened so fast. A stalwart Silicon Valley Bank, the literal Silicon Valley Bank, collapsed in dramatic fashion and was taken over by the FDIC. By now, the contours of what happened have emerged. The bank had their money
2:19.9	tied up long-term in government bonds. The value of those bonds fell as interest rates went up.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from KQED, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of KQED and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.