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Forgive me but I think this may be a contradiction. “didn’t adequately account for duration risk” == “risk taking that did them in”
by williamtrask 4y ago
Forgive me but I think this may be a contradiction. “didn’t adequately account for duration risk” == “risk taking that did them in”
- deleted 4y ago[deleted]
- cal5k 4y agoThere's a big difference between accounting for KNOWN risks wrt managing your treasury - something that every bank does as a matter of course - and trying new things.
- CrazyStat 4y agoSurely having your reserves locked up in assets that you can't sell without taking large losses is a known risk?
- nairboon 4y agoWhat kind of bank doesn't know about interest rate risk? That's their whole business.
- cal5k 4y agoThat's what I'm saying. That's not the bank doing anything fancy and failing because of it, it's them not doing the basic things every bank should be doing.