Fed Alarms at SVB Began More Than Year Ago
Bloomberg Businessweek
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What's the Biggest Problem in the Bank Failure?
SPP was a big outlier because they had grown and ballooned their balance sheet. They didn't have enough lending opportunities to absorb all those deposits. So they parked all this cash from the deposits into the securities portfolio when rates were really low. As rates roves, the value of those securities declined. And ultimately, they were sitting on a $15 billion paper loss position.
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