News for hackers. Stuff that matters.

A comment on FDIC Takes over Silicon Valley Bank. Parent comment

Re:FDIC Takes over Silicon Valley Bank by fairity on Friday March 10, 2023 @12:36PM (#35097879)
> I suspect all depositors will be made whole.

Agreed. The FDIC report shows $209b in assets and $175b in deposits.

Even if they took the full $15b estimated loss to liquidate their HTM bond portfolio, they'd have $20b to spare before not being able to cover deposits.

Am I misunderstanding?

[ Parent | on HN ]
Re:FDIC Takes over Silicon Valley Bank by anonuser123456 on Friday March 10, 2023 @12:43PM (#35098007)
The assets may not be valued anywhere near market prices given the recent run up in interest rates. They don’t have to reprice the asset if they intend to hold it to maturity in the face of fluctuating rates.
[ Parent | on HN ]