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This regulation would have required that they undergo more rigorous stress testing by the fed. Would it have prevented a bank run by a bunch of spooked VCs? We
by comte7092 4y ago
This regulation would have required that they undergo more rigorous stress testing by the fed.
Would it have prevented a bank run by a bunch of spooked VCs? We’ll never know, but one would imagine it would have put them in a better financial position.
- JumpCrisscross 4y ago> have prevented a bank run by a bunch of spooked VCs Yes. If SVB weren’t insolvent, they could have borrowed at the Fed’s discount window to settle liabilities.