Re:Bank Run at Silicon Valley Bank
by pgwhalen on Thursday March 09, 2023 @09:55PM
(#35089889)
This is incorrect, as we learned from Silvergate. Customers pulled their deposits for reasons unrelated to the bank (in Silvergate’s case, the customers of the crypto exchanges wanted all their money back, so the crypto exchanges had to withdraw their deposits from Silvergate).
As Levine put it, it’s not an asset problem, it’s a liability problem.
Re:Bank Run at Silicon Valley Bank
by pishpash on Friday March 10, 2023 @02:17AM
(#35091426)
It is not unrelated to the bank. They took concentrated callable funding that somehow was not matched to the liquidity of their assets. They took a risk.
As Levine put it, it’s not an asset problem, it’s a liability problem.