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.
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.