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And the Fed just keeps raising interest rates like that's gonna solve the issue. Meanwhile banks are failing and the market is teetering on collapse.
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I’ve heard them called that by various pundits. They didn’t even have a person in the risk management position I also heard
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God Bless Texas
Free Iran | |||
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“Complicating the situation, SVB kept a lower level of deposits on hand and invested a greater percentage of its capital in order to try and pay its relatively higher rates. Consequently, SVB has been on looser footing than most other banks. Additionally, some have speculated that SVB developed a reputation for having not-as-strict lending standards. It is speculated that the quality of loans to some riskier venture-backed companies with deposits at SVB has deteriorated over the past year. Many of those firms have come under significant financial pressure as rates have risen and securing capital has become more difficult compared to the low interest rate environment from just a couple of years ago” https://www.fidelity.com/learning-ce...-bank-collapse | |||
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“Becker and other leaders of the Santa Clara-based institution, the second-largest US bank failure in history behind Washington Mutual in 2008, will have to reckon with why they didn’t protect it from the risks of gorging on young tech ventures’ unstable deposits and from interest-rate increases on the asset side” “At SVB, “there was a lot of risk they were taking on that other banks wouldn’t,” said Sarah Kunst, a managing director at venture capital fund Cleo Capital. “That ultimately was part of their demise.” https://fortune.com/2023/03/10/how-s...est-rates/amp/ | ||
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Other banks knew better and that’s why they survived SVB deserves to fail | |||
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