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politico OP t1_jcb6dlc wrote

Reply to comment by [deleted] in We’re POLITICO econ/finance reporters and a bank regulation expert. Ask us anything about economic politics and policy after Silicon Valley Bank’s shocking collapse. by politico

Liquidity and capital regulations are helpful against general downside banking risks. They can do little if the market bails on your business model. PacWest's business looks very similar to SVB's even if their balance sheet looks stronger. Being a bank to tech/Silicon Valley doesn't look like a viable business model in this interest rate environment - hence the counterparty run. When your counterparties run as a bank, you're out of business. No amount of capital or liquidity can save you.

- Steven

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