Paul Krugman says Silicon Valley Bank 'was a kind of affinity fraud a la Madoff' because it sold itself on false pretenses
Paul Krugman is taking issue with how Silicon Valley Bank portrayed itself to the tech startup world over the years, saying the lender relied on 'false pretenses' to gain clients' trust. , the Nobel Prize-winning economist argued that SVB calling itself the"the only bank dedicated to the global innovation sector" was a marketing tactic above all else.
"But it is infuriating. At a fundamental level, we're arguably talking about a kind of scam: a bank that sold itself on false pretenses. It's really part of the larger story of delusion marketing that includes crypto," he added. largest Ponzi scheme in history While SVB was a bank dedicated to startups, that's not where it made most of its money, Krugman said. The bank attracted its clients' deposits and parked them in long-term securities, an investment strategy that went very wrong.
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SVB Financial mulls strategic options, hires restructuring veteranDefunct startup-focused lender SVB Financial Group said on Monday that it was planning to explore strategic alternatives for its businesses including the holding company, SVB Capital and SVB Securities.
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Paul Krugman: Silicon Valley Bank isn’t the Lehman Brothers of 2008Paul Krugman: 'SVB isn’t Lehman, and 2023 isn’t 2008. We probably aren’t looking at a systemic financial crisis. And while the government has stepped in to stabilize the situation, taxpayers probably won’t be on the hook for large sums of money.'
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Treasury, FDIC to brief California lawmakers on SVB collapseU.S. Treasury and Federal Deposit Insurance Corp. (FDIC) officials plan to brief members of California's congressional delegation on the collapse of Silicon Valley Bank, Axios has learned.
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Circle scrambles to contain SVB fallout as USDC loses pegCircle's usd coin (USDC), the second-largest stablecoin in the world, fell below its $1 peg, as markets grappled with the fallout from Silicon Valley Bank's failure.
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