Superprime crisis hits the banks
Telis Demos
The Wall Street Journal
If the 2008 crisis featured “subprime” borrowers; the current “turmoil” features the opposite, says Telis Demos. Banks such as Silicon Valley Bank “catered to some of the wealthiest, most creditworthy clients”. After 2008, banking the rich – who bring lots of cash, pay big fees and seldom default – was seen as the better model. Rising interest rates, however, have led the “most flush depositors” to move their cash in search of higher yields
