[noitanigami]

SVB made loans to cash-rich companies approximate to their funding rounds, when they were least likely to immediately use the cash. These loans typically required the company to hold the money as a deposit in SVB. These deposits were used to buy long duration bonds.

In other words, SVB used these companies to produce new money that they could earn interest on.

[ajross]

Yeah, that's the kind of thing I'm imagining. Though it doesn't explain the VC tweetpanic unless they were getting kickbacks. Is there a cite for that, or a story posted somewhere?

[noitanigami]

https://twitter.com/jonwu_/status/1634250770555219970