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Why are people skittish on banks even if they hold “safe” assets?
Mar 15, 2023

Why are people skittish on banks even if they hold “safe” assets?

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One of the many questions around the two recent U.S. bank failures is why depositors became so spooked even when their bank held supposedly-safe assets like Treasury bonds. The answer, says Susan Schmidt, is largely because of those bonds' decreased value because of higher interest rates. Credit Suisse, one of the world's largest financial institutions, saw its stock nosedive this morning after it revealed it had been audited for shoddy accounting practices. And, a look at why sustainable versions of popular products are finding a growing niche in the market. 

Segments From this episode

Silicon Valley Bank held "safe" Treasury bonds. So why did depositors withdraw their money?

Susan Schmidt, Head of Public Equity at the State of Wisconsin Investment Fund, goes into the behavioral side of the recent bank failures.

Consumer demand for sustainable products goes wall to wall

Mar 15, 2023
Some homeowners are filling their walls with eco-friendly alternatives to synthetic insulation — but that can be costly.
A Havelock Wool employee trims excess material from insulation panels made of sheep wool at the company's facility in Reno, Nevada.
Courtesy Havelock Wool

One of the many questions around the two recent U.S. bank failures is why depositors became so spooked even when their bank held supposedly safe assets like Treasury bonds. The answer, says Susan Schmidt, is largely because of those bonds’ decreased value because of higher interest rates. Credit Suisse, one of the world’s largest financial institutions, saw its stock nosedive this morning after it revealed it had been audited for shoddy accounting practices. And, a look at why sustainable versions of popular products are finding a growing niche in the market.

The team

Leanna Byrne Host, BBC
Kelly Silvera Executive Producer
Meredith Garretson Morbey Senior Producer
Erika Soderstrom Producer
Alex Schroeder Producer
Ariana Rosas Producer
Jarrett Dang Digital Producer (gone fishing)
Jesson Duller Media Producer
Nick Esposito Media Producer
James Graham Producer, BBC
Jo Critcher Producer, BBC
Olie D'Albertanson Producer, BBC