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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 noitanigami on Sunday March 12, 2023 @11:17PM (#35130545)
SVB made loans to cash-rich companies approximate to their funding rounds, when they were least likely to immediately use the cash. These loans typically required the company to hold the money as a deposit in SVB. These deposits were used to buy long duration bonds.

In other words, SVB used these companies to produce new money that they could earn interest on.

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Re:Joint Statement by the Department of the Treasury, Federa... by ajross on Monday March 13, 2023 @12:46AM (#35131214)
Yeah, that's the kind of thing I'm imagining. Though it doesn't explain the VC tweetpanic unless they were getting kickbacks. Is there a cite for that, or a story posted somewhere?
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Re:Joint Statement by the Department of the Treasury, Federa... by noitanigami on Monday March 13, 2023 @02:39AM (#35131945)
https://twitter.com/jonwu_/status/1634250770555219970
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