Do other US financial institutions have the same exposures, or is this a one-off situation based on SVB's closeness to the US tech sector?
In early stage land where valuations are the result of a fairly small consensus, it is plausible that SVB would have over-extended.
These losses aren’t related to SVB’s debt portfolio. It’s due to their deposits being flighty.
SVB banks start-ups. Start-ups are spending cash faster than they’re getting it from VCs or customers. That leaves SVB with fewer deposits with which to fund their assets, so they must fire sell assets, which isn’t fun to do.
As they say themselves, Category IV organizations, like SVBFG, are subject to supervisory stress tests conducted by the Fed "every other year."
So you can get Stress Test results, but they will be stale. See Page 13 here: https://www.svb.com/globalassets/library/uploadedfiles/conte...
Not sure if there are other ways to get tier ratios, would be curious if anyone else could chime in?
https://www.npr.org/2009/03/26/102384657/anatomy-of-a-bank-t...
this was a problem we learned during the 1920s
That has since been...... relaxed gradually, and almost completely done away with under Clinton in the 1990s. And then <10 years later we got the 2007/2008 crisis. But, the original separation of investment and banking didn't get re-instated during the dodd frank stuff that came after the last crisis.