THE REAL BANK CRISIS.

BANKING industry; RIGHT & left (Political science); GOVERNMENT regulation

The structural challenges gnawing away at SVB were hardly unique to SVB - ranging from higher rates eroding the value of its securities to consumer-deposit withdrawals to its asset-liability duration mismatch - even if they were more exaggerated given SVB's rapid growth and tech-startup depositor base. With the collapse of SVB and other banks, the Fed will realize its waiting to act might bring down more businesses with dire implications for the whole economy. False narrative No. 4: Fighting last year's war with inflexible economic dogma at the Federal Reserve: We should make no mistake about one of the prime drivers underlying SVB's implosion - Fed overtightening not only killed this bank but may also send the economy into recession. [Extracted from the article]

Copyright of TIME Magazine is the property of TIME USA, LLC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)