So the FTX contagion is finally hitting the regional banks. All of a sudden today SVBI bank, a top 20 commercial bank lost like -80% value in a single day.
Bruh, you had me googling for 10 minutes, it's SIVB or SVB Financial, SVBI bank no longer around.
I think what happened was that many customers of SVBI knew that a large portion of its books was in the mortgage backed securities market and these were at a loss due to fed interest rate hikes.
Nope, they invested in start-ups, the majority failed to launch anything, and they wanted more fiancing, but they got none, they had to sell bonds that triggered a panic, usual story, although I agree on the rates, it made money more expensive so their strategy of throwing cheap money at everything no longer works.
So no, it's nothing like Silvergate contagion into traditional markets, more like acting as Silvergate did got them here.