Why Banks Keep Failing

In March, Silicon Valley Bank, once the envy of the nation’s tech elite with more than $200 billion in assets, went down the tubes in a flash—pretty much 36 hours from start (rumors of its insolvency) to finish (the announcement of a takeover by the Federal Deposit Insurance Corporation). It was the second-largest bank failure in American history. Only the failure of Washington Mutual, which had more than $300 billion in assets when it went under in September 2008, was larger. Two days after the SVB disaster, the little-known Signature Bank, which had about $100 billion in assets, also failed. That was the third-largest bank failure in American history.

This weekend, First Republic Bank, with $233 billion in assets, is anticipated to meet its demise. In February, the bank’s stock was trading for $147 a share; it’s now about $3.50, a decline