Re:Big Banks Agree to Historic $30B Deposit Injection in Fir...
by comte7092 on Friday March 17, 2023 @01:36PM
(#35200227)
You can certainly draw that chain of events.
However, just because the link can be drawn, doesn’t mean it was the ultimate underlying cause. If the depositors weren’t so heavily coordinated and concentrated together, there’s no way the money would have come out that fast, if at all. Regardless of the loss on the bond sale.
The liquidity problems caused the flight - why else would they take a $1.8b haircut on a securities portfolio and then try a bone-headed cap raise to cover the difference?