LogFAQs > #972138148

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Topic	Politics Containment Topic 402: This Election Sucks and is Now About Trains
VintageGin 03/13/23 4:22:30 AM #140:	SVB wasn't even doing anything particularly risky from what I understand. They invested in bonds (which are traditionally low risk) back in 2021. Then interest rates went up quite a bit and some companies with a lot of money in the bank got spooked and went JG Wentworth on it ("It's my money and I need it now!"). This caused a further run on the bank, and because of the terms of the bonds (10 years) they weren't able to cover everyone withdrawing money at once and had to start selling the bonds at a loss. --- Ginhyun http://i.imgur.com/t7G7uoU.gif <cite>VintageGin posted [p:972138148] in Politics C... [t:80360353]...</cite> <quote>SVB wasn't even doing anything particularly risky from what I understand. They invested in bonds (which are traditionally low risk) back in 2021. Then interest rates went up quite a bit and some companies with a lot of money in the bank got spooked and went JG Wentworth on it ("It's my money and I need it now!"). This caused a further run on the bank, and because of the terms of the bonds (10 years) they weren't able to cover everyone withdrawing money at once and had to start selling the bonds at a loss. --- Ginhyunhttp://i.imgur.com/t7G7uoU.gif</quote> ... Copied to Clipboard!
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