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Two years have passed since the collapse of Silicon Valley Bank, which shook the regional banking sector. The financial sector (XLF) recently saw its worst session since the crisis, raising questions about the safety of banks in the current economic climate.
Former CEO of Silicon Valley Bank, Ken Wilcox, also the author of "The China Business Conundrum," joins Wealth host Brad Smith to discuss the bank's recovery and share his insights on the state of the financial sector.
"The financial sector is doing just fine; I think it's in better shape than it was," Wilcox says. "As far as I can tell, the future is reasonably bright."
Reflecting on the collapse, Wilcox says, "It could have been anticipated, but it would have required, I think, a financially astute observer, and they would have had to study the financial statements."
Wilcox notes that one key indicator there was an issue was the simultaneous rise in deposits, banks' investments in long-term interest-bearing securities, and interest rates.
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"The financial sector has learned a lesson and, for the time being anyway, is taking the necessary precautions," he adds.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Josh Lynch