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

Re:FDIC Takes over Silicon Valley Bank by ummonk on Friday March 10, 2023 @01:01PM (#35098291)
They're just saying that many of the assets are insufficiently liquid to be instantly sold off to cover all the withdrawals during a bank run.
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Re:FDIC Takes over Silicon Valley Bank by kmod on Friday March 10, 2023 @02:19PM (#35099446)
I don't think anyone is saying this? The decrease in value is due to wrong-way interest rate exposure, not due to a fire sale
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Re:FDIC Takes over Silicon Valley Bank by bagels on Friday March 10, 2023 @03:09PM (#35100186)
Well, it's going to be both. Dumping 200b of bonds isn't going to yield premium prices.
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Re:FDIC Takes over Silicon Valley Bank by ummonk on Friday March 10, 2023 @08:06PM (#35103844)
The decrease in value was due to exposure to long duration securities yes.

The closure of the bank was due to a classic bank run after depositors panicked upon hearing of the decrease in value. They had 45 billion in withdrawals in a single day, out of ~175 billion in deposits. No bank could survive that.

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