First Republic Bank and SVB made the same wrong bet. They are paying right now.
One of the many mysteries surrounding the recent banking crisis is that two of the institutions caught up in that mess, the Silicon Valley Bank and the Silicon Valley Bank.
Bank of the First Republic
is located in the San Francisco Bay Area—the former is based in Santa Clara at the southern end of Silicon Valley and the latter is within the city itself, about 47 miles north.
While there may not be any direct connection between these two banks—and it is clear that as of this writing, Silicon Valley Bank has failed and the First Republic (code: FRC) has not— There are some interesting similarities, and finally, perhaps a common denominator that is flawed when it comes to understanding and managing their customers.