Two Executives On What It's Like to Stop a Bank Run

The Journal.

The Wall Street Journal

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🗓️ 18 April 2023

⏱️ 19 minutes

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Summary

In 2017 the FDIC created a pool of banking veterans who would step up to help in the event of another financial crisis. For years, no one needed them. That changed last month when Tim Mayopoulos and Greg Carmichael were called in to run Silicon Valley Bank and Signature Bank while the FDIC tried to stabilize a banking crisis. Further Reading: -Collapse of SVB, Signature Bank Tests the FDIC’s Executive Reserve Corps -Help Wanted: Regulators Seek Executives to Staff Failed Banks -Signature Bank Is Shut by Regulators After SVB Collapse -Silicon Valley Bank Closed by Regulators, FDIC Takes Control Further Listening: -Can the Government Contain a Banking Crisis Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	On the second weekend in March, the US banking system was edging toward disaster.
0:11.0	And two former bank CEOs were about to be drawn in to help manage the crisis.
0:17.0	Tim Myopoulos?
0:18.0	I got a tax very late on Saturday night saying that the FDIC wanted to talk to me early
0:23.4	the next morning.
0:24.9	And Greg Carmichael.
0:26.9	So I got up early around 6, 6, 15.
0:28.5	I looked at my phone and I saw I had a tax ask me if I could be on a call with the FDIC
0:32.6	within the next 20 minutes.
0:34.1	Well, which was, for seven, which was Sunday morning.
0:38.6	Head, head, coffee.
0:39.6	Not yet.
0:40.6	The FDIC, the Federal Deposit Insurance Corps.
0:45.2	It's an independent agency tasked with maintaining stability in the nation's financial system.
0:51.1	The FDIC was urgently trying to reach Tim and Greg because it was taking over two failing
0:57.3	banks.
0:58.3	The sudden sensational collapse of Silicon Valley Bank SVB, which had assets of $1.00
1:04.1	over $200 billion, hit financial markets like an earthquake.
1:08.4	Fallout continues to grow from the collapse of Silicon Valley Bank and signature bank.
1:13.2	They were the largest bank failure since the 2008 financial crisis and the second and
1:18.2	third largest bank failures in US history.
1:22.1	Federal regulators needed to stabilize the two failed banks as soon as possible.
	...

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