To the comment that this will be way worse than 2008 - that is utter nonsense. Banks are far better capitalized than they were leading up to the 2008 financial crisis. SVB had a mismatch of asset and liabilities. It is true that most other banks have MTM losses in their bond portfolio. The industry had >$600 billion in unrealized losses at the end of 2022 (BofA is the most upside down). That said the critical issue with SVB is the concentration in the high tech industry that created the deposit bleed coupled with investments tied to long duration treasuries. The loss from the sale of their securities portfolio to raise cash to meet deposit outflows is what created the loss of confidence and ultimately the run.
This is NOT the same thing as the 2008 crisis where exposure to toxic loans cratered bank balance sheets. Since then capital
requirements have increased significantly and most banks are diversified in their funding sources. Particularly larger banks who have a large portion of retail deposits well under the FDIC limits…
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I pulled this from @uur+1lB1d4Wq because I'm curious whether people agree or not.