There are parallels to be drawn between Friday’s collapse of Silicon Valley Bank (SVB) in the US and the start of the financial crisis in 2008. In both cases, it is about a bank that suddenly finds itself on the ropes, after making a number of bad decisions.
At the same time, according to Peter Benson, there is a big difference: SVB is a much more isolated bank than the investment bank Lehman Brothers was – it is not as centrally located in the financial system.
– Then we have an environment that is not as turbulent as it was then, he says.
Worry about panic more dangerous
The fear of panic is more dangerous than the event itself, says Benson. The fact that President Joe Biden comes out and says that the problem will be solved creates a certain calm and reduces the risk of stressed people starting to withdraw money from the banks.
– This stops what could have led to systematic and larger problems.
Hear Peter Benson, editor-in-chief of Affärsvärlden, in the clip above