Greater diversification proves to be useful in times of crisis.
While the collapse of SVB might have been predictable, what was surprising was the US regulators’ response and the precedent it sets.
In the current environment, it’s hard to predict how inflation will play out, and banks should weigh up all possible outcomes.
A major crisis was only averted last year because of swift intervention by the Fed. Are reforms needed?
The recent flurry of action around GameStop has renewed concerns about the fragility of the market.