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Breakingviews – SVB sale puts too-big-to-fail risk in a new bottle
Breakingviews - SVB sale puts too-big-to-fail risk in a new bottle,The failure of Silicon Valley Bank held two lessons. One is that when a bank wobbles, depositors who aren’t fully protected by government insurance can turn tail in a heartbeat. The other is that financial watchdogs aren’t great at keeping tabs on banks that grow at exaggerated speed. The sale of SVB to rival First Citizens Bancshares addresses the first part, and doubles down on the second.

Breakingviews – SVB sale puts too-big-to-fail risk in a new bottle

The failure of Silicon Valley Bank held two lessons. One is that when a bank wobbles, depositors who aren’t fully protected by government insurance can turn tail in a heartbeat. The other is that financial watchdogs aren’t great at keeping tabs on banks that grow at exaggerated speed. The sale of SVB to rival First Citizens Bancshares addresses the first part, and doubles down on the second.