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Also, people should pay attention when a bank is missing a Chief Risk Officer for 8 months during the most volatile period in fixed income history when Fed fund
by favflam 4y ago
Also, people should pay attention when a bank is missing a Chief Risk Officer for 8 months during the most volatile period in fixed income history when Fed funds rate moved 400bps.
Also, it is not a good look with SVB's CEO personally lobbied to be excluded from stress tests that more than likely would have prevented SVB from YOLO'ing on 10 yr duration MBS.
- simonw 4y agoIf you're actively paying attention to things like that as a matter of course then you're a much more effective person than I am.
- simple-thoughts 4y agoA decent sized startup with a CFO or even just decent advisers should be conducting due diligence on banking partners with over $250k in deposits. I’m in crypto which is a different world, but the idea that I would advise a project to deposit their treasury into a defi protocol I was not continuously risk monitoring is insane to me.
- garry 4y agoWe are asking for regulation to prevent this failure from occurring again.
- davidgerard 4y agoHow many people here have pointed you at the precise regulation that existed for this purpose, that SVB directly lobbied to have removed?
- TuringNYC 4y agoTo me, the bigger problem is that bank balance sheets are only visible on an annual or bi-annual basis. On top of that, "hiding" assets via HTM/AFS treatment rather than MTM treatment is even worse. We need to get to a point where asset reporting is weekly, or ideally daily, so risks are out in the open.