Right, but the bank didn't invest 100% of its funds in MBS and t-bills; IIUC they had plenty to manage their projected operations cost and regular withdrawal / deposit activity. What changed is the panic / bank run. The panic sank them, but it'd sink basically any bank because no bank keeps enough liquid assets to clear all its deposit obligations.
... so SVB not only didn't have cash, it didn't have assets people were willing to buy / loan against to cover enough withdrawals to stop the run even though those assets had guaranteed ROI, which is interesting to me. Not enough lenders / potential creditors think some 10-year T-bills (and bailing out one of the biggest banks in the country on the lender's terms) is worth it?
... so SVB not only didn't have cash, it didn't have assets people were willing to buy / loan against to cover enough withdrawals to stop the run even though those assets had guaranteed ROI, which is interesting to me. Not enough lenders / potential creditors think some 10-year T-bills (and bailing out one of the biggest banks in the country on the lender's terms) is worth it?
Interesting.