California has declared it insolvent. It literally by definition is now.
from the article op linked, in "Findings of Fact", by the Commissioner of Financial Protection and Innovation:
> the bank is now insolvent
If SVB literally had a way to hack the time-space continuum and wait out for asset prices they own , to stabilize ("maturity") , or to pay them back in full ( a loan)...SVB would STILL likely lack enough funds to pay back their deposits.
The issue wasn’t the selling of assets, it was the panic that their actions took to prop up a balance sheet hole. It’s not like Enron or Lehman.
I contend there is no private entity credit that would go near SVB because precisely they realized more losses than they had more depositors, and such credit would have never been secured at the top of the pile with the FDIC lurking nearby.
No credit facility would save a doomed bank after the realized losses. It was a matter of time.
The panic was not the cause. The panic was always going to happen. A public company would have never been able to do a firesale/equity raise without inducing a panic in the first place.
At market price, not face value.
If you need $80B before your 10Y bonds mature and borrow it today, you're paying minimum 4% interest. By the time your $80B in bonds mature you owe $118B
If you're saying it doesn't matter to FDIC because they can get "free" credit, that's equivalent to a bail out