The collapse of SVB exposes the largest crack in the economy
SVB used an exemption from Basel III, which allowed it to run a riskier business, and eventually led to its implosion.<p>Basel III was introduced to force banks to be more conservative, and thus more safe. Downside: this also means bank is going to be less profitable.<p>European banks were forced to implement Basel III, while the US bankers managed to lobby a loophole for certain types of banks. And sure enough, SVB leveraged this loophole.<p>For those interested, FT Alphaville describes this in ample detail:<p>Silicon Valley Bank is a very American mess   
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