Originally Posted by RemoveB4flght

You must have watched a Vox or Politico breakdown. You realize that those treasuries were their reserve capital in lieu of cash, and it doesn’t take a banking expert to realize the risk of your liquidity tied up in government paper issued during near zero interest rates when the fed had been smoke signaling quantitative tightening. As the onion layers are peeled back it has been shown that VC’s pretty much strong armed new startups to keep the cash that was borrowed to fund them in SVB to mask liquidity problems. No two ways about it, they screwed up royally, but that’s neither here nor there…

The real issue is how this administration reacted to the problem, specifically their aversion to mergers and how willing they are to direct the alphabet agencies to put their thumbs on the scales.