4 ms·
They put a lot of money into long-term bonds before the latest interest rate hikes. These bonds now sell at a discount, so they can no longer cover all deposits
by pfg 4y ago
They put a lot of money into long-term bonds before the latest interest rate hikes. These bonds now sell at a discount, so they can no longer cover all deposits by selling them.
- AH4oFVbPT4f8 4y agoThis is a very good/short description that explains what happened. It's not that they made risky investments but rather lack of diversity plus the insider trading of everyone pulling their money did they in. No sympathy.
- Zetice 4y agoRight, so where are the “gains”? Where is the greed? It doesn’t seem like there is an unreasonable upside here, just a misunderstanding/mistake in handling the assets.
- chitowneats 4y agoYour ideas on this topic are so bizarre. Are you arguing here that the bank owners and employees were not paid? That they didn't pursue a strategy they believed would give them higher returns, and failed?
- fbdab103 4y agoBest not to engage in their sealioning.
- Zetice 4y agoI'm arguing nothing, and am trying to better understand why people are continually claiming it was their "greed" that caused this failure, and not their incompetence. They didn't seemingly pursue a strategy that would have resulted in their pay increasing meaningfully, in fact it seems like they pursued a strategy they believed was safe and cautious. It wasn't, but they did seem to think so. But I don't have all of the facts and this is not my wheelhouse, so I'm asking questions for clarity. "I don't know" is a reasonable answer, but not one I find around here much.