Silicon Valley Bank: 19th-century financial crises show how today's regulators could help repair the economy
By Lucy Newton, Professor in Business History, Henley Business School, University of Reading
Victoria Barnes, Reader in Commercial Law, Brunel University London
A bank failure wipes out the money available to its customers and freezes any capital that’s already in circulation. Depositors, borrowers and owners or shareholders all suffer as a result, as does wider economic activity and often the communities or business sectors that the banks serves.
These issues can become all the more concentrated in the wake of a regional or specialist banking collapse due to the specific reach of the failed institution.…
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Wednesday, March 15, 2023