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One of the biggest banks in the world failed to account for a capital management risk scenario where interest rates go up? Insane

• lotsofpulp 4y ago
  Silicon Valley Bank was nowhere near one of the biggest banks in the world. https://en.wikipedia.org/wiki/List_of_largest_banks https://en.wikipedia.org/wiki/List_of_largest_banks Not even amongst the largest banks in the US: https://en.wikipedia.org/wiki/List_of_largest_banks_in_the_United_States https://en.wikipedia.org/wiki/List_of_largest_banks_in_the_U...
  • bgentry 4y ago
    They're #18 on the US list you linked, I saw other articles saying they were #16 so it probably just depends on the date assets were measured.
    • morelisp 4y ago
      The falloff is extremely rapid. They're closer in both an absolute and relative sense to the 40th than even the 10th.
• blitzar 4y ago
  Practically every single bond - which banks effectively have to buy and hold for regulatory reasons - has reduced in mark-to-market value every single day the last 2 years. Personally I think they are nuts for having (reportedly) such a long average duration of bonds in their portfolio, but they were also paying a pretty decent interest rate on savings to their customers - that money has to come from somewhere.