The Rest is Politics podcast on the banking crisis

The Rest is Politics is a great podcast from the UK with Alistair Campbell (Downing Street Director of Communications and Strategy under UK PM Tony Blair) and Rory Stewart (ex UK Conservative Party cabinet minister). In this particular podcast Rory Stewart explains the concerns around the banking system with regard to Silicon Valley Bank, Credit Suisse and the financial instruments that nobody really understands, even the very big banks. There is mention of CDS – credit default swaps which is insurance on the bond. Also a good explanation of the relationship between interest rates and bond prices and how after the 2008 global financial crisis, regulation urged banks to put more of their money into government bonds. Remember that government bonds are seen as very secure and maintain their value. Below is the link to the podcast. The discussion on banks is from the start of the podcast to 6 minutes. Well worth subscribing to this podcast.

Banks in crisis

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