Here's why the Silicon Valley Bank crash has made a recession much more likely in 2023
Business InsiderMAY 2023
The collapse of Silicon Valley Bank was due to greed — plain and simple. Indeed, its CEO lobbied extensively for banking regulations to be loosened, only to need the FDIC to swoop in and save the company. The unusually cozy relationship between the bank and its parent company speaks to deep mismanagement, and the SVB Financial Group is trying to obstruct the FDIC from recovering what it is owed for the bank rescue.
Throughout the Silicon Valley Bank ordeal, the FDIC has shown itself to be less than an impartial and sober-minded regulator. Instead of focusing on the meager funds at stake here, we should examine the sweetheart deal with First Citizens Bank, which the FDIC made in order to exclude politically unpopular hedge funds from consideration and will result in a huge loss for the regulator. This fight would be irrelevant if the FDIC pursued a better deal for the bank.