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 mrguyorama on Friday March 10, 2023 @02:10PM (#35099392)
>they're being punished for not having the money put somewhere it could grow faster.

No, it's because they didn't properly manage their assets to serve existing depositors if those depositors wanted to withdraw. Locking up money for 10 years has obvious liquidity consequences. I knew that when I first learned what a "CD" is when I was like 10.

[ Parent | on HN ]
Re:FDIC Takes over Silicon Valley Bank by shadowgovt on Saturday March 11, 2023 @03:28PM (#35112349)
In that sense, no bank maintains 100% liquidity to handle withdrawals from every account holder.

What I'm having a hard time wrapping my head around is what the investors saw that made them decide to all withdraw at once.

[ Parent | on HN ]