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MajesticWaterBuffalo t1_jduky3v wrote

Reply to comment by [deleted] in First Citizens Bank to purchase assets of Silicon Valley Bank by Substantial-Pass-992

200B in toasters is still 200B, even if the company is 300B in debt.

I could be wrong, but wasn't their main problem not that they invested a lot of their money in long term bonds and couldn't afford to wait for them to mature?

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SamurottX t1_jdv3r6e wrote

Yes, it was mainly a short term liquidity problem. So as long as the purchasing bank has the ability to cover things in the short term, then it's all good. There's still a risk that things hit the fan, but a larger bank would be able to weather a larger run on their deposits.

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