Two US Banks Just Failed - What Happened, and What Now?

Update: SVB deposits will be available Monday, according to regulators. Signature Bank has also now been taken over by regulators, the second FDIC receivership in three days

Silicon Valley: move fast and break things SBV: breaks Silicon Valley: no, not like that

It literally happened so fast that I wasn't aware there was more than one.

I appreciate an adult review of these bank failures without the “click bait” nonsense driven by YouTube profitability algorithms! Grounded, sensible, even review of a concerning financial matter. Thank you.

It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007–2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. Else what happened with the Dollar recently is only the beginning of what will happen if nothing is done to address the current situation.

One of the only financial YouTubers that actually knows what he’s talking about and gives us straight facts and no bs clickbait. Thank you good sir!

I never thought about how harmful a bank monopoly could be, but having one bank that controls half of a sector’s capital seems hazardous

What's so strange about SVB is how fast things went from "Business as Usual" to "Bank Run". In the 2008 GFC, companies that were going down were telegraphed by the stock market, sometimes for months in advance. This thing imploded in 48hrs.. I think the speed that this happened is what is unnerving people. And the bank stocks that have fallen hard in the past day or two could make depositers pull their money in a self-reinforcing cycle.

3:10 Silvergate Bank 6:18 Silicon Valley Bank 8:29 What Now? 10:20 Effects on Economy and other Financial Institutions 11:11 Points to Consider

I was listening to the all in podcast and they made the point that the real tragedy is not that investors are losing money - it’s that small start ups and businesses, that were managing their money responsibly up until yesterday, suddenly have their accounts frozen. Suddenly all these businesses cannot pay their employees, cannot pay their suppliers and contractors, all because they had a bank account with the wrong bank. That means that there will be a lot of tech workers who suddenly will not be getting paid this month, through no fault of their own, nor the company they work for. And if you’re not getting paid, since people won’t be able to afford their rent or mortgage, etc Edit: Update - the Fed is bailing out all the depositors! So the startups will get the money in their bank accounts back

Dear Patrick, I know nothing about high finance--but I have money in banks and I know that when people get really scared, it causes trouble. Your video helped bring the nuance, and more "plain and simple" information to help people like me. Blessings to you, my friend.

I've been following this story closely and researching since it first popped up before the bank run. This is one of the best pieces I've seen to date. Appreciate the level headed view.

It's truly a momentous occasion when I can get something explained by Patrick Boyle and The Plain Bagel in quick succession

I feel like I'm living in the montage at the beginning of a movie about a financial collapse.

It seems like the root of the problem was SVB’s failure to hedge interest rate risks with duration. It makes me wonder if other banks also messed up their durations too.

It hurt that banks are crashing.

Considering the massive downsizing across the tech sector in the past 3 months it makes sense that a bank who's entire pool of funding is in tech would experience a massive bank run.

Thank you for explaining what happened without the sensationalism that is plaguing this topic. Its so important to have a trustworthy and knowledgable source

Thanks for explaining without sensationalism, doom and gloom, and clickbait thumbnails which is 99% of finance related channels on YouTube.

Great video. It’s so refreshing to hear economic news in a concise, straightforward way without the drama. Plus, I always learn something new with each video. Thank you!