Insider Finance - Business - How to sound smart on SVB

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March 14, 2023

Hello! I’m Matt Turner, the editor in chief for business at Insider. Here’s what’s on the agenda today:

Three big takeaways from Silicon Valley Bank’s crisis, from the first-ever social media bank run to which big banks will benefit.
A billionaire tech CEO said Meta and Google staffers didn’t have enough to do.
Companies are getting rid of middle managers. That’s a big mistake.

— Matt Turner

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THE BIG STORY

SVB takeaways

Tim Robberts/Getty Images

The Silicon Valley Bank implosion is the biggest bank failure since 2008. Here are my three main takeaways from the crisis.

First, digital banking and social media contributed to a bank run at hyper speed. SVB depositors initiated withdrawals of $42 billion on Thursday, equivalent to roughly $500,000 per second over 24 hours. Many of the old assumptions around bank liquidity will need to be revised.

Second, it’s becoming clear that big banks like JPMorgan will be big beneficiaries of SVB’s demise. “We need to be where the economy is going,” one founder told my colleagues. “You've got to have your funds in a JPMorgan Chase, a Wells Fargo or a BofA." And so-called shadow banks are ready to pounce, too.

Third, this isn’t over yet. SVB still hasn’t found a buyer. Banks including First Republic saw their stock price plunge on Monday. Ratings agency Moody’s just put First Republic and Western Alliance on watch for a credit ratings downgrade.

— Matt Turner

TOP READS

Middle managers, a tiny-home village, & more

iStock; Robyn Phelps/Insider

Save the middle manager! Few positions in corporate America are more thankless — or more ridiculed — than that of middle manager. But companies like Twitter and Meta are getting rid of them, and that is a big mistake. Here’s why.
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The big short. A doctor wants to make his penis-enlargement implant as common as breast implants. Thousands of men have undergone the procedure, but some say it’s left them deformed and in excruciating pain. Read Insider’s new investigation here.
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Over-hired Meta and Google staff were “doing nothing.” The billionaire CEO of C3.ai said that the tech giants hired so many employees that they didn't have enough work for them to do. Get the full story.

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This edition was curated by Matt Turner, and edited by Hallam Bullock, Lisa Ryan, Dave Smith, Nathan Rennolds, and Jack Robert Stacey. Get in touch: insidertoday@insider.com.

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former national security advisor best full English breakfast THE BIG STORYSVB takeaways rated breakfast spot three main takeaways biggest bank failure stock price plunge nine healthy habits fulltime tech creator actionable highvalue news Three big takeaways credit ratings downgrade sixfigure influencer income fake work debate billionaire tech CEO Amazon Influencer program

Insider Finance - Business - How to sound smart on SVB

Key phrases

Older messages

Wall Street: The fight for SVB’s customers

Why Silicon Valley Bank failed

Wall Street: Banks’ wild weekend

How Silicon Valley Bank imploded

Biggest bank failure since 2008

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