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The prices SVB and other banks use for their assets are not marked to market. Selling it all, today, would mean that they get back far less than the total depo
by grey-area 4y ago
The prices SVB and other banks use for their assets are not marked to market.
Selling it all, today, would mean that they get back far less than the total deposits.
Selling it over time or parking it with a temp bad bank would be fine though and that is what fdic will probably do.
- WalterSear 4y agoThat's to my point though: there's not going to be a fire sale.
- grey-area 4y agoWell let’s hope not, and let’s hope they arrange an orderly process by 9AM Monday. Friday was not great and appeared to take them by surprise.
- WalterSear 4y agoWell, not everyone, given that the CEO's been selling shares :)
- grey-area 4y agoBy them I meant the authorities who intervened midday which is unusual I think? I do feel the svb ceo/cfo etc should face consequences for their actions, bonuses should be clawed back, but really those are not the important actions here - providing stability to the entire banking system and making sure hundreds of businesses do not close at once because of a bank run are far more important. Otherwise there is significant systemic risk.