ASN General Discussion, page-8697

Not sure why you’re posting this here as it’s pretty off topic, but nonetheless; He sold a small percentage of options related securities that was pre planned - there’s other reasons to think poorly of him that are more justified.

Rising rates triggered this, but rising rates aren’t responsible for this. SVB structured their treasury poorly (with practically only long term bonds) for the sort of operations they were doing, they were exposed to this extremely foreseeable risk and did zero to stave it off or had no idea what could happen - either way they messed up.

This actually exposes to people how banking works and how rising rates actually pressures the system to reduce artificial money. Unfortunately some regulations were wound back under previous administrations that were put in place to try limit such failure risks.

I do find it amusing that fly by the seat of your pants Silicon Valley libertarian types are begging for handouts now that it’s their money on the line.

I expect some kind of hybrid private / govt rescue as there’s plenty of assets, it’s more a liquidity problem because as I said before they made poor treasury decisions.

Rates will continue to rise but likely to slow unrelated to this. In the context of a 23 trillion dollar a year economy, this is an ant that ran straight under the FEDs foot thinking it would be fine.