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by JumpCrisscross 1198 days ago
> Banks are required by law to buy US Treasuries (UST)

Yes. But they’re not required to buy long-dated, high-yielding, high-duration Treasuries (or MBS). Silvergate and SVB, out of incompetence or greed, optimised for yield, not liquidity, despite banking flighty depositors.

1 comments

Nor are they required to leave those same positions unhedged.