Silicon Valley Bank Run Explained in 4 Minutes in Basic English
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- čas přidán 13. 03. 2023
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In this video, we take a closer look at Silicon Valley Bank and the recent bank run that it experienced. As a specialised bank catering to the needs of technology startups and innovation-focused companies, Silicon Valley Bank has been at the forefront of providing financial services to some of the most successful and innovative businesses in the world. However, like any other bank, it is also exposed to the risk of bank runs, which can be a serious threat to its stability and reputation. I hope this short explainer video helps in clarifying what exactly happened. Enjoy!
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Hey! I'm Afzal. I make videos on finance and careers. I started my career working at Goldman Sachs within their Asset Management divison. Now I run this CZcams channel and Simpley (www.simpley.io).
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Bro, you’re top tier. The way you explain this in such basic term is a skills, I think even my mum would get it haha. Thanks for this.
Lol thanks!
Thank you, those 4 minutes were more clear than all the medias I've read these last days. 👍
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Simple Talk: Investment Bond Interest Rate to Market Value in 4 minutes👍👌 I had never heard of Silicon Valley Bank before last week. Wow, it's been awhile since I looked at the banks.
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Thank you for explaining it! You made it so easy to understand for someone who has 0 knowledge in finance.
You’re absolutely right
Bond/interest rate video would be great!
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Very Crisp and deeply explained
Thanks!
@@AfzalHussein hey man what’s the song you used for the background?
As always
can we have one on Credit Suisse next please? thank you!!!
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Great video! Excellent communication.
I think there's a bit missing here about how SVB sold the bonds to fund customer withdrawals and then had a shortfall of $1.75 billion for which they attempted to raise capital through a share sale which spooked investors and customers, leading to a declining share price and eventual run on the bank. The reason for the heavy customer withdrawals was that the majority of SVB's customers were tech firms that are cash-light right now due to a lack of VC funding and as such pulled some money out of SVB to fund their operations.
always useful! Love your videos a lot!
I'm taking Finance class, and understand certain concepts - however, this video was extremely helpful! Thank you so much!
Great, simple explanation!
Thank you bro i fully understand your explanation.
As an emolyee of SVB you have explained what happend very well.
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Definitely something I'd ask about when interviewing candidates
👊🏽
so well explained!
Thanks!
Amazing man.. U nailed it. Squared the circle wth such an ease👏
Always clear cut!
My guy 💪🏽
A fantastic summary!
Thanks!
As always awesome. thanks Afzal.
Thanks!
Thank you 💯‼️
Top video, thanks for making financial news and knowledge accessible for us all.
Awesome!
Thanks bro ❤️
Nicely Explained 👍
Thanks!
Thank you for this so much
Pleasure!
You’re a life saver men...
I have a mid-term exam tomorrow related to bank runs and your video really helped me a lot ! thanks for explaining this clearly the situation !
Good luck!
@@AfzalHussein It went well ! thank you 😂
Good to hear! 💪🏽
An explainer vid on bond price / yield would be great!
great vid bro
Thanks!
Great vid Afzal, would love more breakdowns of finance industry news
Thanks!
Awesome work
Thanks!
@@AfzalHussein My pleasure!
Hi Afzal,
Thank you for making this short video it is very insightful.
Would be appreciate if you can make a video on inverse relationships between bond price and yield.
Thanks!
Thanks! Added to the list 👍🏽
Mad ! We’ll explained
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I found the video truly insightful and informative! Do you have videos regarding how bonds, mortgage-backed securities (MBS) work as well?
Could you make a video about different qualifications/licenses needed for different roles in banking? So specific qualifications to be an analyst or a trader etc.
We asked and he delivered 💯
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Yes! Please make a video on the inverse relationship between bond prices and yield. It would be very helpful. Thanks!
Also, you talk about people making deposit to a bank and bank investing those deposits. That is a commercial bank. So what exactly is an investment bank, if commercial banks invest too?
Hey man, great video! What do you mean by the US government stepped in?
What happens to credit default swaps on credit suisse . For 10 million how much premium was paid. If someone would have shorted AT10 bonds what is the CDS amount on it for premium.
Quick question Afzal, I'm new in the sector of finance but one thing I didn't understand, why from the beginning, they didn't diversified their portfolio in order to avoid such issue
That´s the real question everyone is doing, basically poor risk management, lack of oversight and aggressive banking strategies for short-term gains, it´s my guess.
Can we discuss here: bond is fixed income securities it was may 2-3 times I've bought government bond I've got premium for buying them earlier, and got principal and interest after maturity date. Is it at all possible to sell bond prior to maturity date ? At my understanding maximum what I at risk here is interest, cause I should regain principal anyway?
Is true problem here inappropriate managerial actions ? why you need to sell bonds before maturity date - o take other weird actions ?
I am on 14th day with 5 Maalas day, I feel something is already brewing. I’m thinking to bump it to 8 maalas a day
Why not prevent a bank run by simply allowing banks to only invest time deposits, that forbid withdrawals for a certain period of time?
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According to The Indian Express report, the decline of Silicon Valley Bank (SVB) Financial Group can be traced to a sequence of events. The US Federal Reserve raised interest rates, leading some SVB clients to face a cash crunch.
Despite the recent crypto pull back, I think crypto currency is quite profitable and lucrative than this so called bank that ran away with our money.
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