 Last Friday, March 10, 2023, Silicon Valley Bank was shut down by bank regulators because the bank suffered great losses after selling the long-term bounce to raise cash. The reason for SVB's great losses was because the Federal Reserve banks raised the Fed funds by 4% in the last 12 months, causing the other interest rates to go up as well. The long-term bounce owned by SVB were generating interest at rates much lower than the current interest rates. Therefore, when SVB sold these bounce, they had to sell them at greatest counts, incurring losses to the bank. As of December 31, 2022, SVB reported a negative $1.911 billion in unrealized losses known as accumulated other comprehensive income. The total equity capital of SVB was reported as $16.295 billion. Therefore, the AOCI to TEC minus AOCI ratio of SVB as of December 31 was negative 10.5%. Let's call this ratio the A over T ratio. An article from MarketWatch quoted data from FactSet listing the following banks with at least $10 billion of assets each and have very negative A over T ratios. All the banks on this list have A over T ratios that are worse than the negative 10.5% reported by Silicon Valley Bank. What happened to SVB, however, will not happen to the other banks unless the customers of the banks start to withdraw vast amounts of money which might force the banks to sell assets at great losses. Let's hope we don't see a lot of bank failures in the next few weeks.