Tl,dr: they were tied to Silver Capital. Silver Capital lost their asses over the FTX implosion. Also, Fed raised interest rates. Making the banks bond holding worth less. A few big clients pulled funds, bank covered short by selling bonds at a loss. This triggered a small dip, which made some more big investors nervous so they pulled. Then it cascaded.
97.3% of SVB deposits aren’t FDIC insured
And so it starts- remember, when he dominoes start to fall, its starts slowly at first. Think back to 2008. You can’t aggressively raise rates in a world saddled with $300 trillion in debt and NOT expect that accidents won’t happen. https://t.co/COHZLOcXeW
— Frank Giustra (@Frank_Giustra) March 10, 2023
Paramount to remember, 08 crisis was never solved. It was just painted over and delayed via costly debt/inflation Japan style. U.S. bailout of fraudulent, mismanaged (or both) institutions enabled situation to worsen. Financial crisis and crash can wipe out inflation real quick.
— Minsky Moment (@BP_Rising) March 10, 2023
h/t TheHiveminder
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