Re:FDIC Takes over Silicon Valley Bank
by darkerside on Friday March 10, 2023 @04:30PM
(#35101360)
Is there a reason they couldn't have just purchased shorter term bonds and securities instead?
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Greed. Those were yielding close to zero and they wanted the 1.x%
Re:FDIC Takes over Silicon Valley Bank
by polygamous_bat on Friday March 10, 2023 @04:45PM
(#35101546)
It's an interesting reward mechanic for the bankers, "heads I walk home with big bonuses, tails I go home with a big severance and our customers get screwed".
This is the essence of the moral hazard created by the bank bailouts in 2008
The yield has been inverted so short-term has been paying just as much or more than the long-term depending upon which securities you're looking at. 30 to 90 day treasuries have been yielding over 4%