March 22, 2023
Guaranteeing Bank Deposits: Talking with Professor Anat Admati of the Stanford Graduate School of Business
The collapse of Silicon Valley Bank caused regulators to act on uninsured bank deposits, above the $250,000 FDIC cap.
On March 10, 2023 Silicon Valley Bank collapsed . More than 90% of its' deposits exceeded the FDIC limit of $250,000 but the regulators acted quickly to assure the financial markets by extending the guarantee to all of SVB's deposits. Professor Admati dissects the SVB debacle - it is a cautionary tale. She also discusses her 2013 book The Bankers' New Clothes and the 2023 update to be published in the Fall of 2023.
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