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That's true, I should've said that the market value of SVB's assets is likely lower than their deposits at the moment. Of course we don't know for sure, but if
by Denvercoder9 4y ago
That's true, I should've said that the market value of SVB's assets is likely lower than their deposits at the moment. Of course we don't know for sure, but if the market value of assets exceeded deposits, they wouldn't have had to close down.
- JumpCrisscross 4y ago> we don't know for sure, but if the market value of assets exceeded deposits, they wouldn't have had to close down They would have borrowed at the Fed’s discount window if it did. That’s the systemic solution to illiquidity. The FDIC is a fix for insolvency.