Maxfield on Banks

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Maxfield on Banks
THE ORIGINAL SIN OF SILICON VALLEY BANK

THE ORIGINAL SIN OF SILICON VALLEY BANK

How one decision triggered a bank run.

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John Maxfield
Mar 24, 2023
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Maxfield on Banks
Maxfield on Banks
THE ORIGINAL SIN OF SILICON VALLEY BANK
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You can trace the mayhem in banking right now back to something akin to a modeling error.

The ground for the error was laid in early 2020, when Silicon Valley Bank was overtaken by a deluge of deposits flooding in from the government’s response to the coronavirus pandemic. The bank’s deposits tripled over the next two years, climbing from $61 billion at …

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