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This is the correct take.

There are reports that, on a mark to market basis they were insolvent since September 2022.

It is very plausible that sooner or later we remove HTM accounting.

Yeah. The only justification for HTM accounting is an expectation that depositors will be irrationally "sticky", i.e. that when interest rates increase they won't move their money to a bank (or Treasury bill, etc.) offering a correspondingly increased return. It's a real economic loss no matter what; the HTM accounting just assumes that the depositors' irrational behavior will allow the bank to earn its way out of it. For the SVB it clearly didn't.

Just for the population and myself tomorrow: this "HTM" means Held to Maturity

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