Part 9/13:
Why Would No Other Bank Step In?
Despite the bank's substantial deposit base, acquiring SVB remains a risky proposition for potential buyers. The typical asset-liability mismatch, combined with the bank's toxic balance sheet and potential for further depositor withdrawals, acts as a deterrent. Many believe it would be perilous for another financial institution to assume ownership without risking immediate losses or future instability.
Indeed, some financial analysts argue that the government might need to intervene directly, potentially taking over SVB to prevent a wider systemic crisis. Bill Ackman, a billionaire investor, has publicly suggested government takeover could be warranted given the current crisis.