S5E3: Silicon Valley Bank (SVB) in historical context: Assets, liabilities, capital adequacy ratio (CAR), and bank failures

I’ve got competition. Nick wants to replace me with an AI. He says they are faster and better at writing episode descriptions. Well listen here ChatGPT, Bing Chat, Bard and whoever else, challenge accepted! It’s a two faced episode, starting with large language models (LLMs) and returning to the nominal topic of Silicon Valley Bank. Nick is unsettled. He’s chest deep in an ocean of AI assistants and the water is ever rising. Convinced that things are going to change, he’s suddenly unsure about his place in the world. Neeraj is a luddite, but he’s suspicious of LLMs stealing all our intimate thoughts through conversational interfaces. He believes the mind is the last holdout and when they’re in, it’s over. Despite their conflicting feelings, Nick and Neeraj have used ChatGPT and Bing Chat to learn more about finance. Analysis of Silicon Valley Banks’ balance sheets show nothing exceptional when compared to other banks but somewhere in the mix is the information that precipitated a bank run. The data shows that bank failures happen in clusters. Is this a one-off or the beginning of a more widespread economic event? Hit play to find out more. #LLM #GPT #ChatGPT #SVB #Bing #OpenAI This week’s Datalore Report This week’s Jupyter Notebook on Github ChatGPT Bing AI (click on Chat at the top) Anime dating sim that can do your taxes Thumbnail Bing AI prompt: "A cartoon goose digging through stacks of financial documents while sitting behind a desk and wearing an old timey banker's cap that has a transparent green visor" References This week’s Datalore Report This week’s Jupyter Notebook on Github ChatGPT Bing AI (click on Chat at the top) Anime dating sim that can do your taxes AI-generated summary and timestamps Summary In episode three of their podcast, Nira Shah and Nick Schaefer analyze Silicon Valley Bank's financial data and discuss the potential impact of AI technology on their work. They also address a question from last week regarding whether depositors or customers should be saved in troubled banks. The hosts also express concerns about the increasing capabilities of large language models, such as Chat GPT, to access and analyze vast amounts of data, and the potential dangers of intimate conversations with these bots. Additionally, they examine the capital adequacy ratio of Silicon Valley Bank and past bank failures during major economic crises. The hosts also touch on the automation of tasks like tax returns and express interest in further exploring financial data in future episodes. #SVBfinancialanalysis #AIimpactonbanking #ChatGPTdangers Timestamps [00:00:01] "The Wild Truth Chase talks Silicon Valley Bank" [00:00:34] Where to Draw the Line Between Misbehaving Banks and Depositors 00:05:44] The Rapid Advancement of Chat Gbt Technology: A Conversation with Nick Gillespie [00:11:55] Clues of Trouble at Silicon Valley Bank [00:18:05] "Bank Failures in Clusters with Macro Events" [00:18:57] "The History of Bank Failures: A Timeline from the 1930s to Today" [00:21:06] Learning About Financial Data and the Future of Tax Returns