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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 astrange on Sunday March 12, 2023 @09:18PM (#35129325)
SVB failed because all their customers are in group chats with each other and think it would be funny to withdraw all their money at once and then buy stock in the bank.

https://twitter.com/torrenegra/status/1634573234187407369

Even their bad investment decisions wouldn't have killed them if there hadn't been a bank run.

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Re:Joint Statement by the Department of the Treasury, Federa... by s1artibartfast on Sunday March 12, 2023 @09:28PM (#35129446)
If loaning or borrowing money were free, they could have covered every withdraw.

Im pushing back on the specific idea that paying full price for an asset that is locked up for 10 years isn't a loss.

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Re:Joint Statement by the Department of the Treasury, Federa... by stefan_ on Sunday March 12, 2023 @10:48PM (#35130329)
I love this LinkedIn style post of "today we organized a bank run". Except they are totally serious.
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