COLUMBUS, Ohio-The Ohio State Teachers Retirement System recently disclosed a loss of $27.2 million due to the failure of Silicon Valley Bank. However, over the 24 years of investing in the bank, the system has gained more than $30 million. Silicon Valley Bank’s collapse has raised concerns about similar banks, which expanded rapidly after regulatory easing in 2018.
These banks invested heavily in long-term bonds, but with rising inflation and interest rates, the value of these investments declined. The aftermath of SVB’s failure has led to scrutiny of other mid-sized banks, including New York-based Signature Bank, and policymakers are grappling with how to address the resulting instability.
