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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 twblalock on Monday March 13, 2023 @05:32AM (#35133237)
It’s not material.

What matters is that principal is returned in full when bonds mature, but if you can’t wait until maturity you might have to sell them for less than the principal. That is exactly what happened to SVB.

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Re:Joint Statement by the Department of the Treasury, Federa... by kfrzcode on Monday March 13, 2023 @05:56AM (#35133455)
Sounds like they needed more diversity in their overall capital portfolio; based on significant risk of these long-term bond rate increases -- is this a common tactic that would be employed at other banks, but it's just that SVB had a "special" system where customers would hold more money there or something?

What's stopping my Local Bank from crashing this week?

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Re:Joint Statement by the Department of the Treasury, Federa... by twblalock on Monday March 13, 2023 @06:29AM (#35133695)
> What's stopping my Local Bank from crashing this week?

Enough consumer confidence to prevent a bank run is the only thing that prevents a run on any bank, including the largest banks in the world.

[ Parent | on HN ]