I think a more accurate description would be something like: 1) SVB deposits were suddenly up ~4x 2) Interest rates were ~0% and few customers needed loans 3

I think a more accurate description would be something like: 1) SVB deposits were suddenly up ~4x 2) Interest rates were ~0% and few customers needed loans 3) The only way to generate a spread (i.e., keep the doors open) was to buy long-dated securities 4) SVB crosses their fingers and hopes rates don’t rise 5) Oops, rates rise quickly, assets devalue quickly 6) SVB is a little tight on liquidity and wants very badly to avoid selling their devalued assets, but can probably ride it out, provided they can raise a little cash and don’t lose more than maybe 15-20% of their deposits per year 7) People get nervous 8) SVB loses an absolute shit ton of deposits 9) “Hi, we’re from the FDIC and you’re all fired”