The collapse of SVB, the 16th largest bank in the country, has sent tremors across the banking sector. Some say it’s a fluke but others say no, it’s a sign of things to come. “SVB’s institutional challenges reflect a larger and more widespread systemic issue: the banking industry is sitting on a ton of low-yielding assets that, thanks to the last year of rate increases, are now far underwater — and sinking,” said Konrad Alt, co-founder of Klaros Group.
Read Michael Roberts in The Next Recession