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They were still solvent despite the mark to market losses - they just couldn't meet reserve requirements (and planned to raise money through a stock sale to tha
by ummonk 4y ago
They were still solvent despite the mark to market losses - they just couldn't meet reserve requirements (and planned to raise money through a stock sale to that effect) after the assets were marked to market. Meeting reserve requirements is a much higher bar than simply having assets worth more than liabilities.
- jkaplowitz 4y agoWhat reserve requirements? The last US reserve requirements were eliminated 3 years ago.
- MrMan 4y agothis is a lie, I am petty sure. why are you posting this stuff
- ummonk 4y agoI mean we'll find out shortly enough. If they can't find a buyer for SVB, then it's likely insolvent. If they do then it's obviously solvent.
- FireBeyond 4y agoI mean both Californian and federal regulators have specifically published press releases saying that the bank is actually insolvent...
- hnfong 4y agoSo basically you're saying you don't know or you don't have concrete evidence, but you're going to confidently make a claim anyway.
- ivalm 4y agoThat is not true. They initially had some withdrawals that they hoped to raise for, then it spiraled and they had to mark-to-market a larger portion of their portfolio which made them insolvent. Right now they are insolvent (they are also illiquid, but that's a smaller issue).
- user_named 4y agoWrong. SVIB is exempt from reserve requirements since 2018 as their assets are below 250b.