Problem 1. What were the primary factors that led to SVB's failure? Under the current regulatory framework, what factors contribute to a bank run? How would the management of a bank manage such bank runs? What recommendations can be made to improve the banking system?
Problem 1. 2. What are the pros and cons of categorizing debt securities as AFS and HTM? Did SVB misapply and abuse the accounting standards or were the accounting standards flawed in this case? How can FASB improve its accounting standards to improve this situation?