The internet is full of hot takes around the series of collapses we just witnessed and I’ve debated how deep to go here. I found a thread that does a good job of providing a time series of events (with one suggested edit by me) and implications going forward. A big shout out to @professorstam.eth for the quality content 👇
My one edit to the timeline is in the below point, SVB didn’t announce they were liquidating there Available-for-Sale Securities… they announced they had already sold their AFS 👇
So it makes the bank run more confusing, as, if the above description was correct, then yes the scenario would have been:
- market sees bank admission of liquidity concerns
- lets get our money out.
But that’s not what happened, SVB had already made the move of selling their AFS to Goldman at a loss and in their eyes now had the necessary strength in their balance sheet to continue to serve their customers.
This highlights @professorstam.eth’s point further, that the virality of the world we live in can run rampant, even without reason.
The SVB announcement below from their Mid-Quarter update deck dated 3.8.23 👇