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Is it really just panic though? If their assets marked to market were of greater value than their liabilities there would be no reason for a panic in the first
by robryan 4y ago
Is it really just panic though? If their assets marked to market were of greater value than their liabilities there would be no reason for a panic in the first place.
- brunooo 4y agoGood point, and obviously not a great time for SVB equity holders or EVE sensitivity regulation, but looking through their 10Ks or Marc Rubenstein’s great math yesterday at https://www.netinterest.co/p/the-demise-of-silicon-valley-bank https://www.netinterest.co/p/the-demise-of-silicon-valley-ba... also not that much worse than Goldman at some points in 2008. Not great, not terrible as they say, but aside from a couple of very niche specialists no bank on the planet would survive getting 25% of deposits pulled in a day.
- JumpCrisscross 4y ago> no bank on the planet would survive getting 25% of deposits pulled in a day Systemically important ones would, due to the Fed’s discount window and liability diversification.