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By “did everything right” I should have said “did everything legal”.

SVB didn’t break laws, just as you said, didn’t properly manage risk. If there was no run, they’d have made it through, just with low earnings expectations.

FTX took customer money, gave it to friends, and used sticky notes and slack channels for accounting. FTX spent customer funds on beach houses and political ads and god knows what not on government bonds with a slightly too long maturity.



Agreed. I think it just hit a new pet peeve of mine of people thinking treasury bonds are always zero-risk.




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