BloombergArrogance, Incompetence Or Both: What SVB’s Failure Really Means
ADVERTISEMENT
Arrogance, Incompetence Or Both: What SVB’s Failure Really Means
The implosion of Silicon Valley’s favourite bank, which became increasingly dependent on venture capital and private equity, was rooted in hubris as much as its balance sheet.
A Silicon Valley Bank branch in San Francisco, California, US, on Monday, March 13, 2023. Photographer: David Paul Morris/Bloomberg
(Bloomberg Businessweek) -- Banks aren’t supposed to fail. If they did so with any regularity, one of the most critical cogs in our economic machinery—the transformation of deposits (a liability) into loans (an asset)—would just seize up and stop functioning.