Lessons from the Silicon Valley Bank collapse

Wharton finance professor Itamar Drechsler discusses what led to the collapse of SVB and the questions it raises for banks, depositors, and regulators going forward.

From Knowledge at Wharton

The West’s sanctions on Russia

Jesús Fernández-Villaverde, professor of economics and director of the Penn Initiative for the Study of the Markets, discusses the severity of the sanctions, the effects so far, and the potential reverberations for the rest of the globe.

Kristen de Groot

What are non-fungible tokens?

What are NFTs? Sarah Hammer from The Wharton School breaks down the basics of the digital assets.

Dee Patel

In the News

The New York Times

The Fed is doing too much, all at once

A study co-authored by Itamar Drechsler of the Wharton School finds that banks may collectively face paper losses of as much as $1.7 trillion in long-term bond holdings.


Tampa Bay Times

Florida targeting of environmental and social investing could come with costs

A study by the Wharton School finds that Texan cities saw an increase of $303 million to $532 million in interest payments after banning municipalities from doing business with ESG policy banks in 2021.


NBC News

After SVB collapse, some lawmakers weigh having regulators watch TikTok and Twitter for bank panics

Peter Conti-Brown of the Wharton School says that Silicon Valley Bank failed because it was a bad bank and not because of social media, although technology did play a role in the form of digital banking.


Financial Times

Jay Powell and Janet Yellen struggle to calm nerves in banking crisis

Christina Skinner of the Wharton School says that statements by Federal Reserve Chair Jay Powell and Treasury Secretary Janet Yellen have the same objective: quelling panic and runs.


Scientific American

Climate change is destabilizing insurance industry

Benjamin Keys of the Wharton School says that growing risks from climate change and rising reinsurance costs have caused insurers to raise premiums and pull out of markets, abandoning homeowners.


The Washington Post

Surprised by interest rate hikes? Really?

According to Will Diamond of the Wharton School, the biggest culprit in Silicon Valley Bank’s failure is that the Fed’s most severe stress test scenario in 2022 didn’t consider the possibility of rising interest rates.