Editor’s Note: Nicolas Véron is a senior fellow at Bruegel and at the Peterson Institute for International Economics, two policy research organizations in Brussels and Washington D.C. respectively. He has investments in Silicon Valley companies. The opinions expressed in this commentary are his own. View more opinion on CNN.
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On Sunday, the US Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) jointly announced a package of actions to stop the turmoil from Silicon Valley Bank’s insolvency and Signature Bank’s near collapse. As details gradually emerge about the process that led to that decision, it appears likely that a primary motivation was to rescue Silicon Valley from what might…
