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You can't have it both ways, either they can be sold immediately or they can't. What's the theory here? A lot of the assets can be sold immediately but they hel
by stefan_ 4y ago
You can't have it both ways, either they can be sold immediately or they can't. What's the theory here? A lot of the assets can be sold immediately but they held off on doing that to cover deposit outflow for the greater good of having FDIC take control, bury SVB & their careers and methodically unwind it for a better price?
I don't even doubt you can sell the assets and come out of it with 90% of deposits, but the wording is off.
- loeg 4y agoSVB couldn't keep selling assets because it was insolvent, not because the market was illiquid.
- dgacmu 4y agoNo, they sold assets (at a loss) and covered withdrawals. But then they reported their remaining balances and the FDIC stepped in because after taking those losses there were insufficient assets to cover the expected future rush of withdrawals.