Why are people skittish on banks even if they hold “safe” assets?
Segments From this episode
Is Credit Suisse on the verge of failure?
The BBC’s Leanna Byrne reports.
Silicon Valley Bank held "safe" Treasury bonds. So why did depositors withdraw their money?
Susan Schmidt, Head of Public Equity at the State of Wisconsin Investment Fund, goes into the behavioral side of the recent bank failures.
One of the many questions around the two recent U.S. bank failures is why depositors became so spooked even when their bank held supposedly safe assets like Treasury bonds. The answer, says Susan Schmidt, is largely because of those bonds’ decreased value because of higher interest rates. Credit Suisse, one of the world’s largest financial institutions, saw its stock nosedive this morning after it revealed it had been audited for shoddy accounting practices. And, a look at why sustainable versions of popular products are finding a growing niche in the market.
