they have a bunch of unrealized losses. And then the run was on. So they lost $42 billion in deposits in one day last week, and then the FDIC shut them down on Friday. One of the things that's really interesting about the liquidity crunch that Silicon Valley experienced is that in some very important ways, it is very different from what we had in 2008, where we had a systemic crisis of confidence in the banking system, driven by illiquidity and what we're called collateralized debt obligations or CDOs made up primarily of risky mortgages that caused a run on investment banks and money market funds and in the case of AIG insurance companies. What we have in the case of Silicon Valley Bank is a situation where they loaded up on the most pristine high quality collateral like US Treasury securities, but they did so when rates were much lower. And because the duration on much of that portfolio was long, the valuation on those securities got crushed over the last year as the Fed embarked on (7/36)
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