The failure of SVB points out a key need for two things:
1. More banks with fewer deposits to reduce the systemic risk of a failure, and to reduce the need for "exceptional measures" to prevent unrelated folx (like those who use Patriot Software payroll) from getting screwed.
2. Better regulations on the type and mix of assets a bank can have and how it can trade them to prevent the sort of exposure that led to the failure. #politics #policywonk
@lenaoflune
Hey, check out Jay Kuo's article explaining exactly what happened with SVB (statuskuo.substack.com). It's excellent! I now feel like I have some understanding of the whole thing.
@PapaPeugeot Thank you for posting this. There's a lot of uncertainty and conjecture flying around and Jay really pulls a lot of reporting and background together to clarify the situation in a relatable way.👍
@PapaPeugeot That's a great article, thanks!
@PapaPeugeot @lenaoflune Anyone with questions and/or concerns about the SVB situation should read this. I'm not otherwise familiar with Jay Kuo, but he's done a great job of compiling the reporting and background surrounding the SVB failure. I admit that I was skeptical at first, but I think he nailed it!