Podcast: Risky business: More bank collapses ahead?
Rising interest rates and the end of easy money were two factors in the sudden collapse of Silicon Valley Bank (SVB) and a subsequent stock market run on shares of regional banks. Questions were raised about the safety of the entire U.S. banking industry.
On this episode, Jim and Richard examine risk in banking, investing and the broader economy. Federal regulators faced harsh criticism for the latest bank failures. Progressives blamed politicians who eased regulations on medium-sized and small banks. Some on the right claimed that DEI — Diversity, Equity and Inclusion — distracted SVB from focusing on risk management.
This episode's guest is economist and risk expert Allison Schrager, author of "An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk".