They simply couldn’t raise enough cash to meet the demands of large-scale withdrawals by its customers.
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Did they do something wrong? Other banks are not having that problem.
They had a relatively small number of big depositors that were startups experiencing a cash crunch that needed withdrawals. Most banks don’t have that situation.
“Did they do something wrong? Other banks are not having that problem.”
SVB didn’t properly manage their risk and the rise in interest rates devalued their bond holdings. Maybe due to spending their time applauding themselves on ESG and DEI and not paying attention to their actual business.
Other banks with very large long bond holdings could be at similar risk. Hopefully most have had better judgement than the clowns in charge of SVB.