Subject: Re: SVB bailout
It was SVB's fault for not reducing their bond duration as the fed was raising rates. There was no doubt that the FED was in a tightening cycle, and replacing 10% of their long duration bonds with each raise and replacing them with 3 month bills would have closed the gap in their balance sheet well enough that they would still exist. Their vulnerability to a run was exploited because their risk management did not show up to work.

Jk