SVB: The End of Banking as We Know It?
Capitalisn't
00:00
Insolvency
The bank had enormous losses on their health maturity assets. They invested in long-term bonds when the interest rate was at the minimum. So one does not need to be very sophisticated to say that basically they were insolvent. If you don't give me anything in terms of yield and I find an alternative that gives me 3% or 4%. And then if there is no run, even if a lot of those deposits are sent it to other banks? That's what Silicon Valley experienced last week.
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