The Government’s Response To SVB’s Collapse Could Make Another Banking Crisis More Likely — And More Destructive

On March 10, Silicon Valley Bank — which lends to almost half of all the publicly traded venture capital-backed tech and healthcare companies — collapsed. It was the second largest bank failure in U.S. history, second only to Washington Mutual’s downfall in 2008.

The sudden meltdown of SVB, and the subsequent failure of Signature Bank, has sent shockwaves through the wider economy and raised questions about the soundness of the U.S. banking system.