10 min
Bank Failures, Oh My! What You Should Do Ep 115 Excel in Retirement
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- Investing
You’ve probably heard by now that Silicon Valley Bank failed last Friday. It appears the bank rapidly took deposits over the last few years, and they needed somewhere to place their funds. And here begins the problem. The bank put money in Treasury bonds and mortgage-backed securities. When interest rates go up, bonds lose value.A few depositors figured this out and began withdrawing their large deposits in the bank. Eventually the bank was unable to meet the demand of withdrawals. Which...
You’ve probably heard by now that Silicon Valley Bank failed last Friday. It appears the bank rapidly took deposits over the last few years, and they needed somewhere to place their funds. And here begins the problem. The bank put money in Treasury bonds and mortgage-backed securities. When interest rates go up, bonds lose value.A few depositors figured this out and began withdrawing their large deposits in the bank. Eventually the bank was unable to meet the demand of withdrawals. Which...
10 min