The federal shutdown of two banks is unique and not a symptom of a widespread problem, two Pittsburgh financial experts said. “I do think that this is more of a unique situation in banking and not an overall barometer for what’s happening in the tech world,” said Dave Mawhinney, executive director of the Swartz Center for Entrepreneurship at Carnegie Mellon University.
“I’m hopeful that this will be an isolated incident that caused short-term disruption but no long-term negativity,” he said. “But we just never know with human nature.”
In this case, the U.S. closed the failed California-based Silicon Valley Bank, which had more than $200 billion in assets that catered to tech startups, venture capital firms and well-paid technology workers. It was the largest bank failure since Washington Mutual went under in 2008.