Quote:
Originally Posted by GrantDawg
It almost sounds like it wasn't like one big thing. Small start ups were depositing less, left the bank with a cash shortage, then the bank sold some bonds they held for a loss to shore up liquidity, which caused a major run on the bank. Then, collapse.
Sent from my SM-G996U using Tapatalk
|
Agreed, with the underlying factor being the FEDs aggressive interest rate rises.
Going off on a tangent, the total FDIC insurance is apparently $230 billion according to my source. Roughly the size of SVP deposits. Caveat being most accounts at that particular bank are in excess of $250k. The FDIC looks light on face value though.