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First SVB was effectively insolvent way before they had a run. There are many other bank with the same problem. Not having to mark to market doesn’t make you a

First SVB was effectively insolvent way before they had a run. There are many other bank with the same problem. Not having to mark to market doesn’t make you any less insolvent it just makes you a zombie bank

isitmadeofglass 4y ago
[dead]
kunle 4y ago
I think on this basis most banks in the us are functionally insolvent. Not defending SVB - just calling out that the dynamics that make svb insolvent (400bp rate rise in a couple years after a spike in deposits with lots of deployment in fixed income securities) are essentially true for all banks in the us.
- hd95489 4y ago
  It may be true, depending on how low the bar for reserves was set it’s possible a lot of banks are sitting around as zombies
  - kunle 4y ago
    Not just possible. Likely.