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CC-5576-03 t1_jcly856 wrote

Reply to comment by New_Stats in SVB blames remote work for bank failure by Loud_Adagio2222

SVB didn't invest in crypto, they kept their customer deposits in bonds. The problem was that as interest rates increased their old bonds became worth less. If it hadn't been for the bank run they could have held the bonds to maturity and then they wouldn't have lost any money.

Also a bank will never tell you if they're in danger because they don't want to incite a bank run.

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TheManInTheShack t1_jcm1n3l wrote

What most don’t seem to understand is that SVB had plenty of assets. They just didn’t have enough cash on hand and foolishly pre-announced a cash raise which caused the investor to pull out and then a run on the bank.

The reason the US Government is willing to guarantee all depositors is because they know they can find a buyer.

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dastardly740 t1_jcmrwm1 wrote

They also appeared to have a significant proportion of their deposits effectively controlled by one person where that individual telling all his portfolio companies to withdraw there deposits was enough to eat up the banks liquidity.

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