In a matter of a few days, Silicon Valley Bank collapsed when a panic set in, causing a run on deposits. “The blue chip VCs suggested something, then that leaked to other ones, then other ones — we had all our investors calling us and basically demanding we pull our cash,” one source told Ryan Grim. This week on Deconstructed, Grim is joined by Damon Silvers, who has been involved in trying to prevent financial fraud and crisis for more than 20 years. He was the deputy chair of the Congressional Oversight Panel for the Troubled Asset Relief Program, the 2008 bank bailout, and was formerly the policy director of the AFL-CIO.
Grim and Silver discuss what led to a rush of Silicon Valley Bank depositors withdrawing all at once, the subsequent fallout, how the weakening of Dodd–Frank in 2018 paved the way for the current banking crisis, and what reforms are needed to prevent a future and even bigger economic catastrophe.
Transcript coming soon.
This content originally appeared on The Intercept and was authored by Deconstructed.