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Unwinding the position in early 2022 would mean acknowledging and executing a huge loss back then. Not unwinding the position means taking a gamble that perhaps
by PeterisP 4y ago
Unwinding the position in early 2022 would mean acknowledging and executing a huge loss back then. Not unwinding the position means taking a gamble that perhaps it all will work out or perhaps you'll go insolvent. Apparently they chose the latter, and perhaps that's related with the CRO quitting if they disagreed with that choice.
- pgwhalen 4y agoRight, risk management is often about taking a huge loss, so that it doesn’t become an existential one. Clearly risk management was poor here. I only took exception to the idea that they “tried to unwind the position,” which is clearly untrue. There would be willing buyers at the right price.