According to a New York Times article, “When Silicon Valley Bank revealed in March that it had sold, in a single day, a portfolio of what it had assumed were safe investments . . . it signed its own death warrant.”

a. What does the article mean by “signed its own death warrant”?

b. Why did this single action have such a significant effect on SVB’s fate? Is it always risky for banks to sell assets?

Are all banks so fragile that selling some of their assets can cause them to fail? Briefly explain.