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Sort of amazing that someone could write an article referencing bank panics, the Great Depression, and the role the Federal Reserve without even mentioning what
by photochemsyn 4y ago
Sort of amazing that someone could write an article referencing bank panics, the Great Depression, and the role the Federal Reserve without even mentioning what constraints that the pre 1999-Glass-Steagall would have placed on a bank like SVB.
Would those in the know classify SVB as primarily a commercial bank, handling the deposits primarily of businesses (they don't seem to have been in the car-loan and home-loan sector, but I have no idea), and loaning to other businesses, or as an investment bank, with a large portfolio of stocks and bonds? Did SVB have a trading division like Goldman or JPMorgan does, i.e. SVB Capital? What's the SVB Group structure all about?
Glass-Steagall seems to be getting a lot of attention as a possible contributing factor in this story in other venues:
https://www.newsweek.com/bring-back-glass-steagall-opinion-1787966 https://www.newsweek.com/bring-back-glass-steagall-opinion-1...
https://www.nytimes.com/2023/03/15/opinion/silicon-valley-bank-rescue-glass-steagall-act.html https://www.nytimes.com/2023/03/15/opinion/silicon-valley-ba...
https://www.huffpost.com/entry/yellen-glass-steagall_n_64136877e4b0bc5cb64f3ecb https://www.huffpost.com/entry/yellen-glass-steagall_n_64136...
- wpietri 4y agoThe Economist covers the topic of banks pretty much every week. Individual articles are mostly written to be short and approachable; depth comes through multiple articles over time.