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<blockquote data-quote="Captain Ahab" data-source="post: 365747" data-attributes="member: 366"><p>They made the depositors whole despite the FDIC limits to avoid further "Bank Runs". Just about any bank can be rendered insolvent by a "Bank Run" as they are only required to keep a percentage of deposits on hand. SVB dealt in providing money to risky, startup tech companies. Rising interest rates and slowdown in tech was a recipe for disaster. You add a "bank run" and poof, it's toast. This may slow down the fed's rate increases a little.</p></blockquote><p></p>
[QUOTE="Captain Ahab, post: 365747, member: 366"] They made the depositors whole despite the FDIC limits to avoid further "Bank Runs". Just about any bank can be rendered insolvent by a "Bank Run" as they are only required to keep a percentage of deposits on hand. SVB dealt in providing money to risky, startup tech companies. Rising interest rates and slowdown in tech was a recipe for disaster. You add a "bank run" and poof, it's toast. This may slow down the fed's rate increases a little. [/QUOTE]
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