https://archive.is/LZZqs https://archive.is/LZZqs "A sale by SVB of $20bn of securities to mitigate a steep drop in deposits had focused investors’ attention o

https://archive.is/LZZqs https://archive.is/LZZqs "A sale by SVB of $20bn of securities to mitigate a steep drop in deposits had focused investors’ attention on vulnerabilities in its balance sheet. They dumped its stock, wiping $10bn off its shares and crashing the market value of the bank — worth $44bn just 18 months earlier — to below $7bn. "“The prisoner’s dilemma was basically: I’m fine if they don’t draw their money, and they’re fine if I don’t draw mine,” said one of the CFOs, whose company had banked around $200mn with SVB." ... "One hedge fund short seller who detailed the bank’s risks last year warned that SVB had almost unwittingly built the foundation for what could become “the first large US bank collapse in 15 years”. "“They went for an extra [0.4 percentage points] of yield and blew up the bank,” said the person, whose fund held a bet against SVB. “It is really sad.”"