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A comment on SVB Depositors, Investors Tried to Pull $42B Thursday. Parent comment

Re:SVB Depositors, Investors Tried to Pull $42B Thursday by sgt101 on Saturday March 11, 2023 @04:49AM (#35106924)
My little brain sees this as a reason for failure here.

SVB had liquid assets (bonds) that it could sell to meet the demands of the depositors, but those assets fell in value creating losses. The bank was forced to crystalise those losses because it had no cash buffer to fall back on.

If some substantial part of the liquidity had been held as cash this wouldn't have happened.

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Re:SVB Depositors, Investors Tried to Pull $42B Thursday by BrandonS113 on Saturday March 11, 2023 @05:15AM (#35107045)
No. This week, the treasuries and other assets in capital are effectively cash equivalents.
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Re:SVB Depositors, Investors Tried to Pull $42B Thursday by rvnx on Saturday March 11, 2023 @08:40AM (#35108176)
The worst part of it, is that once interest rates started raising and they started seeing the obvious (but not critical!) impact on their long-maturity bonds, they simply could have switched to shorter-maturity bonds and be totally fine.

But they preferred to gamble.

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