suds Posted March 14 Report Share Posted March 14 3 hours ago, robosmith said: There was NOT a run on SVB because of their investments in start up companies. They invested their depositors' money in Federal Reserve Notes. NOTHING "woke" about that. The 'depositors' you speak of were predominantly start-ups and venture capital firms. It's ironic that the very clientele the bank has faithfully served for the past 40 years were the cause of its failure. SVB lent money to start-ups when the venture capitalists wouldn't. When the venture capitalist funding began to dry up, the start-ups began using their deposits to keep their companies going. The belief that something was amiss with the bank (which there was) is what caused the run on deposits. When the bank was forced to sell its holdings of long term bonds at a loss to cover the withdrawals ... the game was over. Ordinarily a bank holding a ton of long term bonds with low interest rates in a time of rapidly rising interest rates isn't the end of the world. But it doesn't work if there's a run on deposits. I agree it has nothing to do with wokeness. 1 Quote Link to comment Share on other sites More sharing options...
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