Eamon Quinn: Remedy for bank turmoil means bad news for customers

Prof Stephen Kinsella says there are parallels with the onset of the financial crisis in 2007, but the speed of the collapse of Silicon Valley Bank has been extraordinary by any measure

Federal Deposit Insurance Corporation (FDIC) staffer Igor Fayermark at Silicon Valley Bank's headquarters in Santa Clara, California on Monday, March 13 after the US government intervened to secure funds for depositors. Picture: Benjamin Fanjoy/AP

Just over a week ago, Stephen Kinsella, the professor of economics at University of Limerick, was in Silicon Valley. In the time it took to make a short airport hop, the extent of the crisis enveloping California’s Silicon Valley Bank had emerged.

Taking stock of the global banking crisis at the start of a second week, Prof Kinsella said there were undoubtedly comparisons to be made with the onset of the financial crisis back in 2007, but that the speed of the collapse of Silicon Valley Bank was extraordinary by any measure.