For now the Fed's newly created bank funding term loan mechanism is plugging the hole by having the Fed take underwater bonds at face value. SVB was solvent tw

For now the Fed's newly created bank funding term loan mechanism is plugging the hole by having the Fed take underwater bonds at face value. SVB was solvent two weeks ago with mark-to-maturity accounting of their underwater bond holdings. SVB, from a bank accounting perspective, became insolvent when they sold the long duration bonds for a loss. At market prices of the bonds, SVB could not continue within bank accounting regulations. I suspect they will recover 90%-some.