The Collapse of Silicon Valley Bank: Smith Experts Analyze and Explain It

The collapse of Silicon Valley Bank is the second largest bank failure in U.S. history. SVB was taken over by the FDIC last Friday after depositors, fearing the bank would soon be unable to pay its debts, began withdrawing their money at an alarming rate.  Smith experts Cliff Rossi and Bill Longbrake recently spoke with Progyan Basu, clinical professor of Accounting and Information Assurance, about the impact of this failure on the banking industry and the economy as a whole.

The three lines of defense (3LoD) doctrine is well-established at most depository institutions, providing a framework that establishes accountability for risk with business units and a checks and balances mechanism on risk management across the enterprise. Even so, 3LoD by itself is not sufficient to ensure risks are managed effectively.

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Toxic Train Derailment Vexing for Real Estate Industry

Health safety for residents following the Feb. 3 Norfolk Southern train derailment in East Palestine, Ohio, has been a top concern. Has it really been safe enough to return – both for the short- and long-term?

How to Bolster Climate Scenario Analysis

The Federal Reserve Board has engaged six of the biggest U.S. banks in a pilot Climate Scenario Analysis (CSA) to assess and “advance the ability of supervisors and banks to analyze and manage emerging climate-related financial risks.”

Registration is limited. If you are interested in participating in the conference, please contact reetta.ali-alha@aalto.fi.

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Registration is limited. If you are interested in participating in the conference, please contact reetta.ali-alha@aalto.fi

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The SEC, CFA Institute, Center for Financial Services at Lehigh University, and the Center for Financial Policy at Maryland Smith are pleased to jointly host the Conference on Financial Market Regulation. The goal of the conference is to bring together participants from academia, industry and the SEC for an exchange of views on topics of relevance to the commission.

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Short-term funding markets provide essential short-tenor financing for banks, dealers, and nonfinancial firms. They also play a central role in monetary policy transmission. These markets have experienced substantial funding stress and investor runs during the 07-09 financial crisis and the recent Covid-19 market turmoil, destabilizing the financial markets and beyond. 

This event is in partnership with the Federal Reserve Board of Governors.

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Risk Lessons from FTX

FTX postmortems have included Axios describing the cryptocurrency exchange as a “house of cards” comparable to Enron, Theranos, Bear Stearns, Lehman Brothers and Madoff Investment Securities. Plus, Moody’s writes the collapse “will radically transform the crypto ecosystem, further shaking trust and raising doubts around its ongoing prospects.”

MFDF, Dechert and the Center for Financial Policy at the University of Maryland Robert H. Smith School of Business will host an one-day programs on all things ESG oversight for fund boards in Washington, DC. From SEC new and proposed rules, industry data requirements, sustainability rating structures, and oversight responsibilities for fund boards.

Please check back soon for the agenda.

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