Welcome back to KK&F, where the great Matthew Zeitlin gives us a primer on the conditions that led to the March 10 fall of SVB (Silicon Valley Bank), which had been involved with nearly half of tech companies backed by venture capital. He also helps us understand the significance (and the truth) behind Biden’s claim that what the Fed did for SVB following its failure was not a bailout.
How should we assess the admin’s decision to guarantee uninsured deposits — is Biden right that because taxpayer dollars aren’t going into the bank to revive it, we can’t call this a bailout? Or is this a useful framework to think about the government’s decision to take unusual action to shore up a floundering financial institution?
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Episode 117 Audio: Matthew Zeitlin