I’m not saying they are insolvent. Their bet led them to having to raise money, and that gave enough signal for their depositors to pull money. Don’t blame VCs, their reactions were rational in this situation.
Well SVB can't raise the interest rate they pay to depositors much without taking a bath, and I don't see why someone would want to keep their money in the bank once it is paying a notably lower interest rate than most other banks. Maybe some more time or wider spread of people wanting to withdraw would've kept them alive long enough to salvage something. But they put a huge amount of their money into this bond that they will be stuck with for a long amount of time. I dunno bank run almost just seems inevitable here.
