[Randalthorro]

The same thing happened to all these stupid crypto exchanges and banks and yield scams.

The point is that they are supposed to have capitalization requirements and regulations that show they actually have more assets than liabilities.

But in reality they don’t so fractional reserve doesn’t work here. In fractional reserve the bank still has assets worth more than liabilities. That’s the whole point of the regulation.

This bank doesn’t meet that basic requirement.

This is due to the rate hikes, yes, but just like all the recent events if the bank had properly adjusted its portfolio after the hikes, making losses and having a shitty stock price for a while, it would have been able to weather this storm. The storm came because the bank never adjusted until too late. It waited until it was negative from asset devaluation due to interest rate hikes