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Michael R. King, Associate Professor, Gustavson School of Business and Lansdowne Chair in Finance, University of Victoria

Silicon Valley Bank's failure: Could something similar happen in Canada?

The U.S. Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on March 10, 2023, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. (AP Photo/Jeff Chiu)

American business magnate Warren Buffett once famously observed: “You don’t find out who has been swimming naked until the tide goes out.”

Silicon Valley Bank was exposed last week by rising interest rates, leading to an old-fashioned bank run — where the bank’s customers rush to withdraw their money all at once.

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