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Silicon Valley Bank (SVB) Commentary Readers who have followed the financial news over the past few days have seen headlines about the collapse of Silicon Valley Bank (SVB). We wanted to provide a brief commentary about what happened and address investor concerns about the safety of their capital or any fears that a repeat of the 2008 financial crisis is brewing. We think a replay of the banking crisis brought about by over-leveraged banks peddling risky mortgage-backed securities remains unlikely. Bank failures have happened in the past, and those failures have not always been connected with systemic problems in the banking system and the economy. In the case of SVB, the vast bulk of the bank’s deposits were corporate in nature and were, therefore, less “sticky” than traditional investor deposits. Further, SVB’s depositors were largely comprised of tech-related start-up companies highly dependent upon venture capital. As rates have risen, money has become less accessible and such companies have had less access to easy capital.