so the other issue is that SVB too a "long bet" on super low interest rates on the bonds or T-Bills they purchased. This and the "run" is what forced them to see early and lose money - now that the "FED" is almost serious about crushing high inflation. Yes, the target is around 2.0 or 3.0% APR/APY inflation for US/US economy and the USD, though before or around the Summer of 2020 (and mostly peaceful protests) The FED decided to pump up their jams (the USD), "beyond". The Federal government and various State governments in the US also decided to pay people to say home, work from home, sleep from home, not work from home, etc... and gave large business (and some smaller business) billions/ 10s of billions/ 100s of billions of USD - almost as much as Ukraine has received (though likely far far less). Also, the "risk manager" of the bank was gone or planning including, woke implosions and many of the top execs were selling a good chunk of their stock - weeks before the implosion - and also attempting to raise some desperately needed cash. It was tragic, though all the BMWs and Porsche vehicles lined up near the bank to claim their money... The tragedy is this could likely have been avoided - had The Bank stuck to running the The Bank and keep or highered a strong risk compliance officer or director - SOMEBODY ... So the FDIC is now back stopping all US based accounts - for the full balance :o -- or so they say - yet they only have enough cash on hand to cover about 2.3% of covered balances (around $9T total USD - iirc). Crazy times!
so the other issue is that SVB too a "long bet" on super low interest rates on the bonds or T-Bills they purchased. This and the "run" is what forced them to see early and lose money - now that the "FED" is almost serious about crushing high inflation. Yes, the target is around 2.0 or 3.0% APR/APY inflation for US/US economy and the USD, though before or around the Summer of 2020 (and mostly peaceful protests) The FED decided to pump up their jams (the USD), "beyond".
The Federal government and various State governments in the US also decided to pay people to say home, work from home, sleep from home, not work from home, etc... and gave large business (and some smaller business) billions/ 10s of billions/ 100s of billions of USD - almost as much as Ukraine has received (though likely far far less).
Also, the "risk manager" of the bank was gone or planning including, woke implosions and many of the top execs were selling a good chunk of their stock - weeks before the implosion - and also attempting to raise some desperately needed cash.
It was tragic, though all the BMWs and Porsche vehicles lined up near the bank to claim their money...
The tragedy is this could likely have been avoided - had The Bank stuck to running the The Bank and keep or highered a strong risk compliance officer or director - SOMEBODY ... So the FDIC is now back stopping all US based accounts - for the full balance :o -- or so they say - yet they only have enough cash on hand to cover about 2.3% of covered balances (around $9T total USD - iirc).
Crazy times!