It's the business model, stupid. New research on the failures of Silicon Valley Bank and other banks in the Spring of 2023 finds that those banks' business models, which were focused on services venture capitalists and crypto firms, were bigger factors than their unrealized losses and uninsured deposits. The white paper from Steven Kelly and Jonathan Rose makes the case that the prevailing narrative about the failure of SVB is flawed and understanding the nuances of what happened two years ago is critical to making the right policy adjustments today. Read all about it in my latest for American Banker. https://lnkd.in/eAEhvY86
