Illiquid and insolvent play off each other to the point that one implies the other at this state. The only way to make back the $100 they spent on a 1.25% 10 y

Illiquid and insolvent play off each other to the point that one implies the other at this state. The only way to make back the $100 they spent on a 1.25% 10 year $100 treasury was to wait 8 more years. Those 8 years they'd either have to become slowly become insolvent by offering their depositors 3-4% savings accounts like every other bank, or become illiquid because what depositor would keep their money in an account earning 0.5% so that SVB can keep the lights on. They had to sell and book the loss eventually.