#18 | POSTED BY VISITOR
I'd love to hear you explain how just being "woke" could make billions of dollars magically disappear. Perhaps there is a more likely scenario, something that actually happens in the real world and has happened before:
How SVB Was Doomed By a Bad Bet on Mortgage Securities and the Fed's Rate Hikes
The demise of Silicon Valley Bank wasn't driven by credit problems but by an old-fashioned mismatch of assets and liabilities that doomed many thrifts back in the 1970s.
SVB's mistake was investing in longer-term mortgage securities with more than 10 years to maturity, rather than shorter-maturity Treasuries or mortgage issues maturing in less than five years. This led to an asset/liability mismatch.
Things unraveled quickly for SVB. On Wednesday, it announced moves to sell some $21 billion of Treasury and agency bonds classified as available-for-sale for accounting purposes, realize a $1.8 billion loss, and raise $2.25 billion in capital.
The plan didn't work as depositors rushed to pull out their money.
Barron's
Putin's just mad that it floats.