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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by mbesto on Sunday March 12, 2023 @08:20PM (#35128752)
> not because they took risky bets on startups.

SVB regularly provides credit to risky startups, which is why they existed in the first place (because other banks wouldn't lend at those rates). So, yes, they sorta did place risky bets on startups.

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Re:Joint Statement by the Department of the Treasury, Federa... by lambic2 on Sunday March 12, 2023 @08:30PM (#35128867)
Source for this? All evidence show that their failure at least started with them owning a lot of "safe" bonds, whose value declined with increasing fed rates.
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Re:Joint Statement by the Department of the Treasury, Federa... by mbesto on Monday March 13, 2023 @09:50AM (#35135692)
https://www.svb.com/landing-pages/venture-debt
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Re:Joint Statement by the Department of the Treasury, Federa... by mbesto on Monday March 13, 2023 @02:38PM (#35140359)
To elaborate further with hard numbers. See #2:

https://www.linkedin.com/posts/rich-falk-wallace_silicon-val...

#1: Mortgage backed securities: $82B (83% residential) #2: Direct loans: $74B (55% short term loans to VCs & PE) #3: Liquid assets: $55B

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