> How is that possible? <
I’m just making a wild guess here. SVB held a lot of bonds that are now worth much less than face value (when interest rates rise, older bond prices fall).
Maybe the Fed will be buying those bonds at face value. Hey, we bought a $1000 bond for $1000. The taxpayers have lost nothing!
No matter that this $1000 bond is only worth $500 today.
Is this all? Are we going to hear about more banks failing this week?