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/biz/ - Business & Finance

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54033005 No.54033005 [Reply] [Original]

Seriously why did it collapse?They are saying they owned a shit ton of securities giving way too low interest rate.

But isn't that the case for every bank in the usa post 2008?

Everyone is talking bla bla it fell muh startups muh venture capital, but nobody is talking about the reasons.

We know why ftx fell, they did fractional reserve and larped they had 300k btc they never had, but nobody is talking about why SVB fell.

>> No.54033877

>>54033005
they fell because of silicon valley hivemind. you have no problem if you are illiquid but your customers don't withdraw. VC funds made all their portfolio companies withdraw

>> No.54033896

>>54033877
Yea but now everyone is on panick mode worldwide and if the clowns in the white house don't have an answer in 48 hours this crap may expand.

>> No.54033971

>>54033005
Sam doubled down and dug an even deeper hole for himself. Smarter execs give in quickly and aim to get bailed out.

>> No.54033984

>>54033005
>But isn't that the case for every bank in the usa post 2008?
yes, yes it is :^)

>> No.54034022

>>54033005
FTX had a greasy lying Jew behind it all making excuses and tried to stop the implosion with ever increasing lies to protect his rat slimy self.

For SVB people just LMAO’d and walked away.

>> No.54034175

>>54033005
From what I’ve been told, one of the biggest issues is that SVB was holding massive unhedged positions in mortgage backed securities. Which is honestly HILARIOUS that a mere 13 years after the GFC, which was basically caused by shitty mortgage backed securities, a bank that’s basically holding assets for an entire industry just yolo’d incomprehensibly big positions in MBS with literally zero hedging strategy in probably the largest speculative bubble ever witnessed in history.

Pure unadulterated incompetence and arrogance.

>> No.54034211
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54034211

>>54034175
This shit makes ftx feel like a nothingburger, how many other banks like this are?

>> No.54034235

They failed because the FED raised rates.

>> No.54034479

All of them bro, literally every single one