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There is a remarkable paragraph in the report: "On March 9, SVB lost over $40 billion in deposits, and SVBFG management expected to lose over $100 billion more

by eugene2010 3y ago

There is a remarkable paragraph in the report: "On March 9, SVB lost over $40 billion in deposits, and SVBFG management expected to lose over $100 billion more on March 10. This deposit outflow was remarkable in terms of scale and scope and represented roughly 85 percent of the bank’s deposit base. By comparison, estimates suggest that the failure of Wachovia in 2008 included about $10 billion in outflows over 8 days, while the failure of Washington Mutual in 2008 included $19 billion over 16 days. In response to these actual and expected deposit outflows, SVB failed on March 10, 2023, which in turn led to the later bankruptcy of SVBFG."

JumpCrisscross 3y ago
> On March 9, SVB lost over $40 billion in deposits, and SVBFG management expected to lose over $100 billion more on March 10. March 9th and 10th were the Thursday and Friday before SVB collapsed. On March 8th, Goldman Sachs advised SVB to go public with non-binding stock commitments [1][2]. The stock dropped, the commitments vanished, and then it plummeted. Because SVB was pretending its 70¢ bonds were worth $1, it had clearly lost the faith of big investors, and it couldn't go to the Fed; it was illiquid and insolvent. [1] https://www.ft.com/content/7e7fdddb-724c-42fd-98ee-5d7248d53334 https://www.ft.com/content/7e7fdddb-724c-42fd-98ee-5d7248d53... [2] https://ir.svb.com/news-and-research/news/news-details/2023/SVB-Financial-Group-Announces-Proposed-Offerings-of-Common-Stock-and-Mandatory-Convertible-Preferred-Stock/default.aspx https://ir.svb.com/news-and-research/news/news-details/2023/...