- Silicon Valley Bank (svb) failed with spectacular speed after taking an enormous unhedged bet on interest rates staying low.
- Most of svb's depositors were Bay Area tech startups with accounts holding well in excess of the $250,000 that is insured by the federal government.
- Regulators judged svb too big to fail and guaranteed all the bank's deposits.
- The fallout in the markets continues as banks' share prices are continuing to plunge.
- The regulation of banks which were large but not enormous has been inadequate given the threat they pose to the economy.
What really went wrong at Silicon Valley Bank
Silicon Valley Bank has failed after taking an enormous unhedged bet on interest rates, leaving many tech firms facing life in a financial deep-freeze.