4 ms·
I think what made it worse here is that depositors of SVB were undiversified... If you had a bank that held deposits from various kinds of people, it's less lik
by vatsalaggarwal 4y ago
I think what made it worse here is that depositors of SVB were undiversified... If you had a bank that held deposits from various kinds of people, it's less likely that all of them would want their money out at the same time unless there was some of kind of widespread change in sentiment towards the overall financial system.
- helsinkiandrew 4y agoWhat made SVB even worse was that its customers were flush with VC cash and didn't need to borrow, so it looked elsewhere to make a return on the cash.