The money did not evaporate (like SBF crypto debacle). They have over-invested in low return bonds and instruments to the point they did not have or maintain enough cash on hand.
They were forced to sell some of those investments, which went to crap thanks to Bidenflation, prior to the maturity so they sold at a loss. This in turn started to drive down their stock price and then the bank run began and here we are because they were already cash poor. This creates panic and drives the stock price into the dirt.
I am skeptical about the taxpayers being spared the expense (and insult) of bailing them out because this would only be true if they had not been selling instruments at a big loss for very long. We don’t know. The sell-off prior to all of this by the executives tells me that they knew it was going to crash after they could not find “new investors”.
We will see and if I got something wrong above with what I understand about it I welcome any corrections.
“I am skeptical about the taxpayers being spared the expense (and insult) of bailing them out”
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We should be used to this insult by now. Situation normal in this country.
Add the part about the VCs telling their clients to pull their money from the bank. That’s reportedly what started the run.