It took deposits, it made loans, it processed payroll and services and other transactions, and it was sort of a bank for that industry. But it did a lot of the things that you would associate with the bank. It was just very focused on the business of working with startups and venture capitalists. Coming up on the show, can the government contain a banking crisis? Before last week, you probably never heard of Silicon Valley Bank unless you were a startup founder or a venture capitalist.Ĭharles Farrell: So Silicon Valley Bank goes back to 1983. Kate Linebaugh: Welcome to The Journal, our show about money, business, and power. And if everybody decides all at once not to believe in the system, then the system comes apart. Either you believe in the system or you don't believe in the system.
Then on Sunday, the government took over another bank, Signature Bank and announced sweeping measures designed to steady the financial system.Ĭharles Farrell: So the government really, really, really wants to try to stop this from continuing. Kate Linebaugh: Silicon Valley Bank collapsed on Friday. This was the 16th biggest bank in the United States that banked lots of really sophisticated customers in the United States' premier industry, so it's pretty significant. This bank catered to the tech industry and last week it collapsed in a matter of days and was taken over by the government.Ĭharles Farrell: This is not some random little bank that banked a few small businesses in one town. Kate Linebaugh: The bank Charles is talking about is Silicon Valley Bank. You don't see banks fail every day, especially not banks of this size. This is about as interesting as it gets in finance. We're watching a banking crisis unfold.Ĭharles Farrell: It's vastly more exciting. Kate Linebaugh: And it's Sunday night and we are not watching the Oscars. I'm the financial editor at the Wall Street Journal This version may not be in its final form and may be updated.Ĭharles Farrell: Hi, I'm Charles Farrell. This transcript was prepared by a transcription service.
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