You could imagine an analyst idly walking their way through the fundamentals for SVB.
They note “T1 ratio’s look okay (e.g, below a bunch of banks, which we imagine our analyst is looking at)…
…capital adequacy is there, e.g. comparable…
NIM’s look fine. So far so good…”.
“Now I’ll just check those funding ratios. Oh, it dropped off my series.
Same with the LCR. No variables returned.
Oh well, carry on, probably nothing, must be nothing unusual to report”.
The imaginary analysis here ends with the FT’s nicely put “Oh”.
For those that can’t zoom in on the blurry fine print, it’s a note about how SVB are not subject to the Federal Reserves LCR or NSFR requirements. That’s why they aren’t extracted fields in the above reported items, not because they don’t exist, but because the firm isn’t bound by them, can have them however they like, and ultimately, it is this mismatch that killed them.
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