[PGR88]

fetched prices of about 85 cents to 90 cents on the dollar for the first batch of assets sold out of $114 billion seized by regulators last month

This is exactly what caused the problem. Given that bank equity as a percentage of assets and liabilities is usually quite low, a 10-15% drop in asset prices is more than enough to make them technically insolvent.

[ConservativeMind]

I disagree. No bank buys loans at a fire sale without a discount.

This is a great return, compared with other banks during bad times.

[Lonesome in Massachussets]

technically insolvent. is the worst kind. Insolvent is insolvent. George Bailey's bank was insolvent because his drunk uncle left the cash in Mr. Potter's office. SVB was insolvent because they left the money in President Biden's drunk sailor treasury bonds.