South13May 2, 2023
Robert Reich

Silicon Valley Bank

Signature Bank

First Republic Bank

Together, these three failed banks held more assets than the 25 banks that collapsed during the 2008 financial crash.

How can we prevent this financial meltdown from getting worse? Make banking boring again.

May 2, 2023 at 5:50pmWeb
Show threadJon ForemanMay 2, 2023
@rbreich some things shouldn’t be exciting.
Show threadChaosMay 2, 2023
@rbreich what was the cost to save them? wasn't First Republic just 19b?
Show threadehurtley May 2, 2023
@rbreich There have been rafts of bank failures about once a decade for many decades. I have been directly impacted by it each time. Benjamin Franklin, Washington Mutual, SVB. I guess the moral of the story is to never bank anywhere I have an account...
Show threadCliff BarbierMay 2, 2023

@rbreich
You're usually spot-on. But what do you mean, "**25** banks that collapsed"? You're undercounting the failed banks by nearly TWENTY TIMES???

"In all, 489 FDIC-insured banks failed during the crisis years 2008 through 2013."

p15
https://www.fdic.gov/bank/historical/crisis/overview.pdf

Show threadDiscerningHorseMay 2, 2023
@rbreich the degree of regulation in banking is proportional to the time since an economic crisis caused by loose banking controls. Somehow we all forget the crash and the government loosens the controls...