Re:FDIC Takes over Silicon Valley Bank
by engineeringwoke on Friday March 10, 2023 @12:37PM
(#35097906)
There's a $40 billion hole in their balance sheet...
[ Parent
| on HN ]
As fairity pointed out in a comment to this thread, "The FDIC report shows $209b in assets and $175b in deposits."
Unfortunately much of their balance sheet is illiquid (consider loans they've made to venture-backed businesses, and of course a poor choice they made in government debt maturity).
Thus a liquidity crisis; technically also insolvency, but not gross mismanagement and excessive leverage by any means. Unwinding it will be quite routine (see my reply to kmod).