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The Demise of Silicon Valley Bank - by Marc Rubinstein

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The Rapid Collapse of the 16th Largest Bank in America

“When you’re not working, what do you do to de-stress?” That was the last question Greg Becker, CEO of Silicon Valley Bank, fielded at an investor conference on Tuesday this week. “Cycling is my advice,” he replied. “Living in Northern California and being on the peninsula. That’s just—I think it’s the best bike-riding cycling in the world, period.” Three days later, Becker’s bank is in receivership. We’ve talked before about the interest rate risk that lurks on banks’ balance sheets and how the industry manages it. During the pandemic, banks took in record volumes of new deposits.…

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