As house prices fell further, the pain quickly spread to more traditional borrowers who defaulted on their mortgages and to banks that had bundled the mortgages into securities and sold them to other investment firms. In the early 2000s, banks approved subprime mortgages for unqualified borrowers who couldn’t refinance or repay the loans when the housing bubble burst. The 2008 crisis enveloped the entire housing market, threatened the survival of the nation’s biggest banks, and threw the economy into its worst downturn since the Great Depression. While SVB's meltdown and the stress rippling through the banking system may stir memories of the 2008 financial crisis, it has little in common with the earlier episode. How is this different from 2008 bank collapses? Opinion: Blaming Silicon Valley Bank collapse on diversity or 'wokeness' gives away Republican gameĪ week after the FDIC took over SVB, its parent company filed for Chapter 11 bankruptcy. Opinion: SVB's failure poses serious challenge for America's innovation economy
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