This week’s episode of “WisBusiness: the Podcast” is with Brian Andrew, chief investment officer for Johnson Financial Group.
He provides insights on the recent high-profile collapses of Silicon Valley Bank in California and Signature Bank in New York, highlighting some of the factors that led to the banks failing last month.
“If everybody decides to take those deposits out in a day or two or three, like happened with Silicon Valley Bank, the bank has a major liquidity problem,” he explained. “And they have ways to get liquidity from the Fed … from their security portfolio, but if all of the deposits decide to leave in a very short period of time, that’s going to create a problem. And that’s what we saw happen.”