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Buying long-term Treasurys and booking them as high-grade capital (whatever they call it) was legal under GS too, and was the cause of SVB's failure. SVB was k
by SilasX 4y ago
Buying long-term Treasurys and booking them as high-grade capital (whatever they call it) was legal under GS too, and was the cause of SVB's failure.
SVB was killed by the boring part, not the startup banking risk.
- GabeIsko 4y agoLarge venture capitalist depositors demanding to pull out billions of dollars because of relatively minor liquidity risk definitely contributed to the bank run though.
- SilasX 4y agoThat's irrelevant to the topic of this subthread, about Glass-Steagall and the regulations that would have prevented this.