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Yeah, I would not have done it. You always go short maturity at low rates. Unless you are borrowing, then the opposite. Depositors weren’t getting anything. I

• stephen_g 4y ago
  That’s a sign of mismanagement if true. Commercial/retail banks (as opposed to investment banks) usually make basically all their money on lending. Deposits (as liabilities) need to be so low risk that they basically don’t do much more than break even.
• asimpletune 4y ago
  I think they were paying interest on accounts, and it was actually becoming substantial especially as deposits increased so much.