Well, it looks like the banks did the right thing in bailing out Silicon Valley Bank (SVB) and firing the management.

However, there are other banks out there that hold an abnormal percentage of their assets that aren’t lent in Treasury bills and notes.

This means that, as interest rates are raised, the value of these Tbills and notes goes down, which isn’t a concern (they’re made whole at maturity) as long as the bank isn’t run upon and has to sell these assets at a fire sale price and raise capital at the same time, which is what did SVB in.

Powell and company at the Fed might have also learned a lesson, in that you can’t make up for lost time and raise rates more rapidly. There will apparently be no rate increase in March, and lower rate increases down the road, until the Fed sees what inflation does in coming months.

It’s also possible, although not discussed in the media, that banks like SVB might have to call in loans made at low interest rates to shore up their balance sheets.

So, call up your banker this morning inquire about his or her health and find out what the status of your loan is.