Week 12 Reading Recap for 2023

ARTICLES

https://www.ft.com

Banks are designed to fail - and they do

Banks fail. When they do, those who stand to lose scream for a state rescue. If the threatened costs are big enough, they will succeed. This is how, crisis by crisis, we have created a banking sector that is in theory private, but in practice a ward of the state.

https://www.wsj.com

Yellen Says U.S. Could Move to Protect Deposits at Other Banks

Treasury Secretary Janet Yellen said Tuesday that the federal government could step in to protect depositors at additional banks if regulators see a risk of a run on the banking system. Ms. Yellen delivered remarks at a gathering of the American Bankers Association in Washington as she and other federal officials try to shore up confidence in the U.S.

https://www.ft.com

Executive pay at Silicon Valley Bank soared after big bet on riskier assets

Executive pay at Silicon Valley Bank soared after the bank embarked on a strategy to boost profitability by buying riskier assets exposed to rising interest rates, according to a Financial Times analysis of securities filings and people familiar with the matter.

https://www.ft.com

Four ways to fix the bank problem

Banks are designed to fail. And so they do. Governments want them to be both safe places for the public to keep their money and profit-seeking takers of risk. They are at one and the same time regulated utilities and risk-taking enterprises.

https://newsletter.pragmaticengineer.com

Amazon doubling down on RTO (return to office)

👋 Hi, this is Gergely with a bonus, free issue of the Pragmatic Engineer Newsletter. We cover one out of four topics in today's subscriber-only The Scoop issue. To get full issues twice a week, subscribe: One month ago - on 17 February - Amazon announced its new remote work policy.

VIDEO

Why Investors Are Piling into African Startups

TWITTER

George Porter

@georgemporter

Texas Republicans have written a bill to ban Chinese students from all colleges and universities, including the A&M and Univ of Texas systems:

capitol.texas.gov/tlodocs/88R/bi…

NEWSLETTER RECAP

https://paragraph.xyz

Crybaby Capitalism and the Risks of Inflation and Market Crashes

The failure of Silicon Valley Bank, followed by the decision by US authorities to bail out all depositors, has sparked a heated debate. While some commend the move as a precaution against a larger financial disaster, I believe it was the wrong option. The action establishes a hazardous precedent by

https://paragraph.xyz

The Rise and Risks of the Shadow Banking System

The Federal Reserve's decision to maintain historically low interest rates has made it challenging for banks to maintain profitability through traditional lending methods. As a result, banks have shifted their investment strategy towards securities in recent years. This shift is part of a bro

Marathon Continues...