M040323
Reflections Following My Fourth Financial Crisis
Sometimes markets change slowly as innovation or regulation transforms winners and losers. But sometimes – think now – markets undergo radical franchise-value paradigm shifts as critical structural flaws expose mortal systemic vulnerabilities. The SVB crisis is actually the fourth radical franchise-value shift I’ve seen in my financial-services career. As a result, this memo looks back at lessons learned the very hard way and then forward to constructive actions to minimize the chances of doing this all over again even sooner than before.