This is all the fault of the fed and ZIRP. It's the S&L crisis all over again. Any bank that has not hedged their interest rate exposure is a lot of trouble right now. I don't want to claim zero big banks are in trouble, but I would claim that zero big banks are in trouble due to unhedged interest rate risk.
This might be downvoted due to the FED finger point, but that aside it is exactly right. A responsible banker would have invested in floating-rate securities or hedged the fixed-rate risk via interest rate swaps. SVB was certainly sophisticated enough to know this.
