Warner did not rule out the possibility of a bailout and emphasized the importance of SVB depositors The SVB executives were elated to receive their money back and stressed the rapidity with which SVB collapsed.
“The best outcome will be – can they find a buyer for this SVB bank today, before the markets open in Asia later in the day. That would be the best,” Warner spoke to ABC’s This Week host Martha Raddatz.
SVB disclosed last Wednesday that it sold off a lot of securities at loss and moved capital to raise capital. This panic sparked by venture capital firms, and catalyzed an attack on the bank. Federal regulators took over SVB by Friday.
SVB was the 16th-largest federally insured bank, and it was also the largest to fall into financial trouble since Washington Mutual collapsed during the 2008 financial crisis. Warner, who serves on the Senate Committee on Banking, Housing, and Urban Affairs, outlined the timeline of SVB’s demise.
“This bank bought long-term treasuries, interest rates went up, and they got caught in a bind. But what was different in your report made clear, $42 billion came out of this bank on one day — on Thursday. And frankly, some actors, I think, we’re accelerating that run. To put in comparison, Washington Mutual during the crisis … lost $16 billion dollars over 10 days,” Warner stressed.
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