Breaking down the SVB fiasco

UPDATE: SVB has been bailed out by the government

Didn’t these people ever see The Big Short??

This is misleading - all banks own MBS and Credit is fine. It misses one giant pt. SIVB put $90+Bn of Secs with 1.95% rate into HELD TO MATURITY because they didn’t want to mark them to mkt. Fair value was $76Bn. They only have $12Bn Equity. B/S has been underwater for 6mths.

I immediately quit listening when he pronounced it “silicone”

You can read the detailed story here 👇

Short and sweet.

Appreciate the good information and especially the video format 🤝

They didn’t sell “some” of their MBSs, they sold a sizable portion of them at close to a $2B loss

This was great! Thank you.

There have actually been 511 bank failures since 2008. The last before this one was in 2020.