RE: Evaluating how US Fed's rate hikes initiated troubles for Silicon Valley Bank leading to its bankruptcy

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Evaluating how US Fed's rate hikes initiated troubles for Silicon Valley Bank leading to its bankruptcy

in hive-175254 •  2 years ago 

Dear @mintymile

Great analisys.
It's hard not to see that inteterest rate hikes are one of main reason for those banks to suffer lack of liquidity. Bank runs that took place were nothing more than nail to the coffin.

I wonder how many more big businesses will fail due to liquidity issues before FED will finally pivot.

Have a great weeek ahead of you buddy,
Yours, Piotr

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Sorry for late reply, yup who knows there are more banks as mentioned in worst situation, if a bank run should follow, there will be a collapse.

But Fed I heard has ade arrangements for banks to borrow so they won't face any shortage of cash and the investors have already shifted deposits to bigger banks, which will be able to handle this stress.

The problem was with these banks puting customer deposits on these instruments for long term, so liquidity was locked so to say.

Nice hearng from you, been a while!!!