Silicon Valley Bank, Bear Stearns and Martin Wolf

While relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of last year, according to the FDIC.

This is not a bank crisis yet.

On Thursday, billionaire hedge fund manager Bill Ackman compared SVB to Bear Stearns, the first lender to collapse at the start of the 2007-2008 global financial crisis.

“The risk of failure and deposit losses here is that the next, least well-capitalized bank faces a run and fails, and the dominoes continue to fall,” Ackman wrote on Twitter.

But most analysts say the implosion of SVB appears company-specific for now, wrote Julia Horowitz and Anna Cooban.

https://edition.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways

Fed bailout of Bear Stearns

Remember Friday March 14 2008

It was the day the dream of global free-market capitalism died.

Martin Wolf, Financial Times, March 26 2008

https://www.internetional.se/moralhazardwsjled0925.htm#march14