Depends on how levered the different assets were.
It could be 1:5-1:10 in some asset classes. In others, it could be 1:20+ That ratio is going to determine how much the interest rate impacts the value of long-term securities being used to back deposits.
In an SV=based bank, the additional complexities of warrants, equity, etc..., which SVB used to help fund the entire startup & VC-backed ecosystem, it becomes even more complex.
What we are seeing here is nothing new, but ultimately boils down to trust. When the consumer trusts the system, it functions, to a point. When trust is lost, the entire system can come crashing down in hours. There is a reason Goodwill is a line item on the Balance Sheet. This isn't limited to banking/finance/VC/PE, but also extends into the healthcare system, education, etc... Pretty much most sectors of the global economy.
@MortgageHorn what is your take on the impact to a homeowner who is current on payments, locked in over the past 2 years at below 3% and the bank they have their mortgage with goes into receivership?