The troubles at Credit Suisse and SVB have proved that smart bankers don’t play dangerous games, writes Jonathan Shapiro.
The seeds of the banking disaster that has toppled Silicon Valley Bank and threatens to engulf Swiss banking giant Credit Suisse were sown well before January 2022.
“I’m extremely worried about much higher interest rates, not because the Fed will move it there, but people will realise that they have to borrow money and leverage in order to keep up with inflation. And so, I think that the Fed will lose control.”
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