3min chapter

Money For the Rest of Us cover image

Are More Bank Runs Coming? The Collapse of Silicon Valley Bank

Money For the Rest of Us

CHAPTER

The Bank's Capital Is the Difference Between Assets and Liabilities

S. V. B. has $91 billion of these held to maturity securities, but their fair value based on interest rates was $76.1 billion. SBV financial had lost, unrealized losses of $20 billion on the bonds that it held. If it had to sell all those bonds, it would completely wipe out its capital. The banks look more secure than they actually are.

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