“””If the SVB loan portfolio is sound, then, the bank was destroyed by panicked depositors.”””
Yes, SVB was destroyed by panicked depositors. And who were these panicked depositors???
These panicked depositors were the ones who had deposited multi-millions of dollars into SVB while they knew full well that FDIC only insured their deposits for $250,000.
SVB knew the risks of having these multi-million dollar deposits as did the people who made the deposits.
SVB knew the risk of buying 30 year treasury bonds and mortgages using the multi-million dollar demand deposits.
When interest rates go up, bond prices go down.
I have yet to see any public accounting of the SVB bond and mortgage portfolio.
Do you have a credible link - CNBC, Bloomberg, Reuters, WSJ - that confirms SVB was heavily invested in long bonds and commercial office building mortgages?
Thanks.