It all starts in 2021, the start-ups have received enough investment which has increased the funds generated by the Silicon Valley Bank from 102 to 189 billion dollars, so the bank thought why not take US Treasury bonds to diversify a little and that's where the problem comes.
The Fed announces the week following an economic recovery,interest rates are raised,direct consequences the financing conditions of companies have become very difficult,the value of the bonds they had bought has lost value.With this wind of panic the start-ups wanted to withdraw their capital, so the bank was forced to sell part of its bond portfolio to pay the start-ups.
They recorded a loss of more than $1.8 billion thanks to this bad investment at the wrong time, when the bonds were losing value. The bank then decides to make a capital increase of 2.25 billion which should allow them to bail out the coffers, unfortunately people have become more afraid and have emptied everything.
To conclude, let's say that the federal government took things lightly, a law was passed in 2008 after the subprime crisis, to supervise banks with 50 billion management funds,Under trump the rules changed, banking institutions with more than 250 billion dollars were those who were monitored, sillicon valley had less than that so went under the radar.
In view of all this, wouldn't it be better to trust the blockchain and invest in a currency like Bitcoin?