'This time is different': SVB collapse symptom of easy money rather than systemic banking issues

Collapse is not an echo of 2008

James Baxter-Derrington
clock • 7 min read

The collapse of Silicon Valley Bank is not an early indicator of a 2008-style economic crisis, experts have said, instead arguing the fall of the institution is a symptom of the end of a period of “free-and-easy money”.

While many have asked whether the largest bank failure since the Global Financial Crisis portends a second similar event, most argue the idiosyncratic nature of SVB's business is to blame for its collapse, rather than systemic issues in the banking situation. This morning (13 March), HSBC bought the firm's UK arm, purchasing SVB UK for £1, along with all its liabilities, a move which had been brokered with the support of Chancellor Jeremy Hunt and Prime Minister Rishi Sunak. As a result, all depositors of SVB UK had access to their deposits and banking services restored, with no taxpayer...

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