From what I understand, after selling everything SVB was around 1billion in the red. I get this implies the bank had to go under and the process of liquidating all assets takes time (that's why the gov't provided the liquidity for their customers), but when all is said and done won't the fed only be losing about a billion dollars down the line (provided the bonds don't recover and everybody stays generally calm)?
Maximum-Top445 t1_jcj4mnx wrote
Reply to We’re POLITICO econ/finance reporters and a bank regulation expert. Ask us anything about economic politics and policy after Silicon Valley Bank’s shocking collapse. by politico
From what I understand, after selling everything SVB was around 1billion in the red. I get this implies the bank had to go under and the process of liquidating all assets takes time (that's why the gov't provided the liquidity for their customers), but when all is said and done won't the fed only be losing about a billion dollars down the line (provided the bonds don't recover and everybody stays generally calm)?