2 ms·

There is a very large difference between FTX and SVB. The people behind FTX will probably go to jail because they committed crimes and effectively stole money.

There is a very large difference between FTX and SVB. The people behind FTX will probably go to jail because they committed crimes and effectively stole money. SVB mismanaged interest rate risk and ended up on the wrong side of interest rate hikes. They had similar results of people quickly trying to pull all their money out, but it's not "exactly an FTX situation".

blibble 4y ago
no bank on earth can survive every depositor turning up at once and demanding their money whereas an exchange shouldn't have a position at all and a hedge fund normally doesn't allow withdrawals at all (without vast notice)
- freejazz 4y ago
  Well, people didn't show up to demand their money for no reason.