FDIC Takes over Silicon Valley Bank

Re:FDIC Takes over Silicon Valley Bank by nemo44x on Friday March 10, 2023 @08:09PM (#35103869)

Why would a bank take your money and go to the trouble of managing it if they didn’t plan on using it for something? The purpose of a bank is to lend money. They need deposits to do that.

In this case you’re sort of right in that they found have hedged a bit more by diversifying into more shorter term assets.

Hindsight and all.

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Re:FDIC Takes over Silicon Valley Bank by rqtwteye on Friday March 10, 2023 @10:12PM (#35104815)

I think there is a little more to it. I don’t know about SVB but Deutsche Bank had a solid business doing pretty unexciting banking. Then the CEO got a big ego and pushed for larger returns which made them do more risky stuff and eventually fail. So it’s basically a big ego or just plain greed

[ Parent | on HN ]