What the bankruptcy of the Silicon Valley Bank means for our financial institutions

Many of us still get shivers down our spines when we hear about bank failures and bailouts. After all, it wasn’t even fifteen years ago when we experienced one of the worst economic disasters in history, and institutions like Bear Stearns, Lehman Brothers Inc., American International Group Inc. and others became famous for the wrong reasons. The recovery from the Great Recession took years, and some of its effects are still felt today.

So when several banks collapsed in March in what was the largest bank failure since the financial crisis of 2007 and 2008, you’ll forgive some of us a bad sense of deja vu.

This time it is the technology sector that is driving things. Silicon Valley Bank, the largest institution to fail in March, served a host of tech startups, while other failed banks, such as Silvergate Bank and Signature Bank, were known as go-to institutions for the cryptocurrency industry.

The administration moved quickly, with President Joe Biden reassuring the public: ‘Our banking system is safe’ and promised that customers would be cured, according to CNN. Biden also called for new banking rules and stricter regulations.

In this episode of the Podcast for legal rebelsNathan E. Seiler, partner at Am Law 100 law firm Ballard Spahr, talks with ABA Journal’s Victor Li about the Silicon Valley Bank bankruptcy and what it means for the larger financial industry.

Seiler, chairman of the company’s Business and Transactions Department, also talks about how this series of bank failures is different from what happened in 2007 and 2008, and what reforms and changes, if any, we may see from the federal government.

Also see:

ABAJournal.com: “Law firms must consider ‘one more risk’ after bank failure that met their needs”

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In this podcast:

Nathan E. Seiler

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Nathan E. Seiler

Nathan E. Seiler is a partner at the law firm Ballard Spahr, Am Law 100. Seiler is chairman of the firm’s Business and Transactions Department, practice leader of the Emerging Companies and Venture Capital Group, and a member of the firm’s expanded board of directors. In his practice, he advises high-growth companies on corporate and securities transactions, including initial incorporations, venture capital and private equity financings, mergers and acquisitions, public and private securities offerings, securities disclosure and compliance, and general corporate advisory. He works with clients across industries including software, biotechnology, medical devices, information technology, telecommunications, natural and biological products, clean technologies and renewable energy.

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