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Behind the Money

Why SVB’s collapse is not a 2008 repeat

Behind the Money

Topher Forhecz

Markets, Investing, News, Banking, Finance, Business, Business News, Crypto

4.4350 Ratings

🗓️ 15 March 2023

⏱️ 24 minutes

🧾️ Download transcript

Summary

The collapse of Silicon Valley Bank last week raised questions about the strength of the United States’ banking system, and whether we’re headed for another financial crisis. The FT’s US financial commentator Robert Armstrong tells us why he’s not freaking out. 

Clips from CBS, NBC, CNN, DW

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For further reading:

SVB was only a little bit insolvent, luckily

SVB’s collapse is not a harbinger of another 2008

The weekend US officials hatched a plan to stave off a banking crisis 

Silicon Valley Bank shows the perils of regulators fighting the last war


For further discussion: 

Join an FT subscriber-only webinar on SVB’s collapse and the fallout, featuring Robert Armstrong and other FT journalists and guests, on Thursday March 16 1600-1700 GMT (1200-1300 ET). Register here

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On Twitter, follow Robert Armstrong (@rbrtrmstrng) and Michela Tindera (@mtindera07)


Read a transcript of this episode on FT.com



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Transcript

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So general question here, I mean, seeing bank runs, just that term, I mean, like, yikes,

0:39.0

should we be freaking out?

0:41.0

The problem, you know, you put me in a difficult situation, right? Because there's a feedback loop here, right? If everyone else is freaking out, you should freak out. But it would be much better if everyone didn't

0:56.6

freak out. That's the F.T's U.S. financial commentator Rob Armstrong. And he's been thinking about panic a lot recently. That's

1:06.2

because he, like a lot of financial journalists, has been watching a story over

1:10.0

the last few days where panic has played a central role. And that story I'm talking

1:15.5

about is the collapse of Silicon Valley Bank. And as this news broke last week,

1:21.4

the headlines have been dire.

1:23.2

Tech Lenders Silicon Valley Bank collapsed on Friday.

...

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