Re:Emergency credit line for SVB customers
by svnt on Saturday March 11, 2023 @05:33AM
(#35107105)
The run, predominantly by VCs, is what destabilized the bank.
In a regime of rising interest rates this gives them pricing power on the loans where they were just passive depositors previously. Since SVB loans were essentially only to companies who were already customers of these VCs, you could view this move fairly cynically.
In a regime of rising interest rates this gives them pricing power on the loans where they were just passive depositors previously. Since SVB loans were essentially only to companies who were already customers of these VCs, you could view this move fairly cynically.