Silicon Valley and the Large Bank Dead Pool
- Mar 9
- 7 min read
Updated: Jul 9
March 10, 2025 | Premium Service | Two years ago this week, Silicon Valley Bank imploded as the result of management incompetence and “supervisory failure,” to paraphrase Treasury Secretary Scott Bessent’s comments to the Economic Club of New York last week. We decomposed the failure of SVB in 2023 ("Who Killed Silicon Valley Bank?; The IRA Bank Book Q1 2023").
Source: FFIEC (12/31/2022)
The Federal Reserve Board noted in their post-mortem of the failure:
“Silicon Valley Bank (SVB) failed because of a textbook case of mismanagement by the bank. Its senior leadership failed to manage basic interest rate and liquidity risk. Its board of directors failed to oversee senior leadership and hold them accountable. And Federal Reserve supervisors failed to take forceful enough action, as detailed in the report.”
The remarkable group which populated the financial portfolio of the Biden Administration left behind a huge mess. There are hundreds of banks and credit unions that have been left insolvent by quantitative easing c/o the FOMC that have not been sold or resolved. President Donald Trump and his team now own the mess. How big is the mess? A lot bigger that DOGE savings.
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