svb-starts-bankruptcy-filing...

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svb-starts-bankruptcy-filing

svb-starts-bankruptcy-filing

svb-starts-bankruptcy-filing


https://www.marketwatch.com/story/bitcoin-soars-past-26-000-after-svb-starts-bankruptcy-filing-4822013c?mod=mw_latestnews
 
On Friday, March 17, 2023 at 10:27:28 AM UTC-4, a a wrote:
svb-starts-bankruptcy-filing

svb-starts-bankruptcy-filing

svb-starts-bankruptcy-filing


https://www.marketwatch.com/story/bitcoin-soars-past-26-000-after-svb-starts-bankruptcy-filing-4822013c?mod=mw_latestnews
Click to expand...

There are several types of bankruptcy not all of which mean the business is broke. In this one SVB is filing for court-supervised reorganization under Chapter 11 bankruptcy protection, which immediately stops anyone from suing them to liquidate its assets, which makes a lot of sense.
 
On 18-Mar-23 4:16 am, a a wrote:
Yet one more #veryStupidByLowIQaa post.
Click to expand...

A company is insolvent if it cannot pay its debts as they fall due from
money that it controls (i.e. it cannot claim not to be insolvent just
because it thinks it can borrow some more money).

For a bank, with lots of deposits at call, it can find itself in
insolvency even if it has plenty of assets, just because it cannot
convert those assets into cash quickly enough to pay a bunch of
depositors who all want their money back right now.

In that case, it has to start bankruptcy proceedings even if there is
zero chance that any depositor will lose their money.

Sylvia.
 
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