Silicon Valley Bank collapses, triggering government bailout
Silicon Valley Bank, a major lender to the world of venture capital, collapsed last week after a run on deposits, prompting a government bailout. The bank's demise was the immediate product of horrendous risk management by the bank's officers, but there are also important public policy failures here, particularly the Fed's high-interest rate policy and a reckless, bipartisan bank deregulation law signed by President Donald Trump in 2018.