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Podcast: In Focus by The Hindu
Episode: What caused the collapse of Silicon Valley Bank, and is there a danger of ‘contagion’? | In Focus podcast
Description: Last week, California-based Silicon Valley Bank, the 16th largest bank in the United States, collapsed, sending shock waves through the start-up universe. Then two more banks – the crypto-currency focussed Signature Bank and Silvergate Capital – shut down, sparking fears of wider financial contagion, similar to how the collapse of Lehman Brothers in 2008 triggered a global crisis.The American government and the Federal Reserve acted fast to try and avoid precisely such a scenario by announcing measures aimed at boosting confidence in the banking system. The Biden administration has announced that all the depositors’ savings in the Silicon Valley Bank w...