Originally Posted by
AllYourBaseAreB
SVB wasn’t insolvent it was just suffering a liquidity crunch. They have plenty of money tied up in treasuries that they were being forced to put up for fire sale to cover all the tech bros’ massive withdrawals. The bank investors are losing their investment. The big depositors are getting their money back early, vs having to wait. They just wanted to stop this moronic bank panic from spreading
1 INSOLVENT
a
: unable to pay debts as they fall due in the usual course of business
b
: having liabilities in excess of a reasonable market value of assets held
2
: insufficient to pay all debts
an insolvent estate
Potato potato
The bank that isn’t really a bank was more of a venture capital firm. Only 6-8% were account holders covered under FDIC. But our government will bail out their donors…. I mean Silicon Valley. This administration just nationalized the banking system.