-—w/treasuries paying so well: That is the exact problem. With the geniuses like Jim Kramer telling everyone far and wide, a year ago, to park their money in those long term treasuries paying a whopping one percent. With the somewhat sudden bump in interest rates those same treasuries are now paying about five percent. That makes those old ones worth about half of the purchase price. That’s SVB’s problem and will bite the Sussex’s right in their royal buttz if they, in fact, put all their eggs in the SVB basket.
And the fix will be long and hard because not one gummint a-hole Not Yellen, Not Powell, not anybody, will even suggest rolling back big spending.
of course Treasuries mature - bills every 3 to 6 months, notes and bonds longer - and can be sold. no one in their right mind would have gone long long Treasuries when Powell started squeezing. and people who were sitting on cash would have done well to roll bills and be in safety of the vehicles. so the people who are at risk are those who sat on cash which has minimal insurance. but my question is why regulators allowed this bank to be without risk manager for such a long time. there is more to this story if that reporting is correct.