from Balaji | by Balaji

In a talk given four days ago, the FDIC chair noted (a) the potential for bank runs due to huge unrealized losses and (b) how “complex & challenging” it was to operate when “interest rates change to the extent they have.” In other words, the Fed did it. t.co/cZ8w1o2mHq t.co/kn80MCqTNL t.co/KqCWhaBYgq

He specifically notes how the Fed’s rapid change to interest rates has resulted in unrealized losses for “most” banks. And that this has the potential to cause issues if there are unexpected liquidity needs. Four days later SVB fails. t.co/P6jaAex1Rq