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Why Silicon Valley Bank’s collapse was an abject failure of regulation

The perverse lesson of the global financial crisis is that even if your neighbour is smoking in bed and lights his house ablaze, firefighters must still put it out to stop the entire neighbourhood burning down

Why Silicon Valley Bank’s collapse was an abject failure of regulation
Photo: Getty Images

Daleep Singh is chief global economist at PGIM Fixed Income and former deputy director of the National Economic Council for the Biden administration

Policymakers judged — correctly — that while Silicon Valley Bank’s risk management practices were an egregious outlier, its vulnerabilities weren’t unique.

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