Which means in a bank that doesn't have enough cash on hand to cover all depositors, they will have even less now.
I'm just trying to figure out how Charles Schwab, a historical investment savings and loan bank, got shut down trading today.
To the best of my fundamental understanding of Schwab, they are extremely crypto averse, and have questionable if any ties to the larger contagion.
Shit is super fucked up today.
what this has to do with "crypto" in the first place?...that s-t is completely unrelated and is primarily caused by the loan book losses due to the fast increases in interest rates.
As now become apparent, FED told people in Dec 2021 that they would raise 1% in 2022. Instead, they did 4% or more.
Now, it becomes clearer why SVB bought MBSes yielding 1.5% in Dec 2021. Those are the securities they have 10% loss in, which gave them 2bil loss on a 20bil forced sell, which precipitated the whole shebang.
I noted the SChwab, though, but they are trading now off the lows, only 10% down.