Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Money and Finances
Reply to "I don’t know how banks work "
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous]SVB was well enough capitalized that the why and the what are the same thing [/quote] Nope ! This is not an issue of being adequately or inadequately capitalized. This issue is exactly that stated in the thread tile: "I don't know how banks work." And, clearly, the officers and directors of SVB do not know & understand how banks work. Capitalization is just one part of a bank's operations. Adequate capitalization is different than PROPER capitalization. SVB would have been "well enough capitalized" (to use your words) if the maturity date of the investments (long-term government treasuries) matched the maturity date of the deposits. But, checking accounts and savings accounts are on-demand accounts without a specific maturity date. So SVB's excessive investment in long-term bonds was poor management of the bank's deposits relative to the liquidity rights of the bank's depositors.[/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics
