4 ms·

you are doing a pretty good job trying to explain away the officers of this bank running it into the ground. you havent even started to try to excuse their lend

by MrMan 4y ago

you are doing a pretty good job trying to explain away the officers of this bank running it into the ground. you havent even started to try to excuse their lending practices. what are you trying to accomplish? their CRO committed career-ending blunders and even with only short term securities on their books this bank could run into serious trouble simply by dint of their customer base all running into trouble at the same time, as is happening. why do you need to posture here man-splaining this shit incorrectly to people who dont know any better

fwlr 4y ago
Because the officers of the bank are guilty of maybe 10% more garden variety bank greed than the average bank, while the real criminals here are the Silicon Valley CEOs who conspired to start a bank run and within 24 hours were demanding taxpayers fork over billions to clean up all their mess.
- UncleEntity 4y ago
  > …while the real criminals here are the Silicon Valley CEOs who conspired to start a bank run… Yeah, way to victim blame. Only an irrational person would “take one for the team” and leave their assets in an obviously failing bank. I mean, if only so-and-so had kept their mouth shut nobody would have noticed that some cryptodudes and dudettes had blown a few measly billion of their customers’ funds.
  - fwlr 4y ago
    I mean, I’m much more concerned about the “immediately demanding taxpayers make them whole” bit.
anon84873628 4y ago
I think fwlr is doing a good job bringing actual data & detail to the conversation. They don't seem to be attempting to excuse or exonerate the bank officers, indeed they do call this behavior "dirty laundry". But they are fairly questioning whether the regulation would have actually prevented this scenario. If there is a subtext intended, it seems to be that the Fed didn't adhere to its previous assertions about how fast interest rates would rise, which is something that would undermine the stress tests.
- fwlr 4y ago
  > If there is a subtext intended, it seems to be that the Fed didn't adhere to its previous assertions about how fast interest rates would rise This is extremely perceptive! I do feel that way, and you know what? I didn’t fully realize that I did until you pointed it out. Yeah, two major activities of the Federal Reserve are “saying what it will do with interest rates in the next few years” and “changing interest rates”, it’s really bizarre that they can’t get these two to even remotely line up. I know they have to respond to fluctuating macroeconomic situations, but is that really enough to almost completely disconnect “their predictions of their actions” from “their actions”? It feels like a bit like a fig leaf, it kinda doesn’t pass a smell check.
  - rstuart4133 4y ago
    Thanks for your contributions. I've been pondering the same thing. You've saved me a lot of effort. > Yeah, two major activities of the Federal Reserve are “saying what it will do with interest rates in the next few years” and “changing interest rates”, it’s really bizarre that they can’t get these two to even remotely line up. True, but it wasn't just the Federal Reserve. I live in Australia. It was exactly the same story here: https://www.afr.com/markets/equity-markets/why-the-rba-and-everyone-else-got-inflation-so-wrong-20220908-p5bgf2 https://www.afr.com/markets/equity-markets/why-the-rba-and-e... What I didn't realise is the Reserve Banks also operate in "hard mode" when it comes to economic predictions, just as the VC's did in this bank run: https://www.abc.net.au/news/2023-03-12/imf-how-we-missed-the-inflation-surge/102075588 https://www.abc.net.au/news/2023-03-12/imf-how-we-missed-the... So you can put this down to SVB operated on the best available advice, butt the best available advice was wrong. Well that, and their customer base was a bunch of lemmings.

by MrMan 4y ago

fwlr 4y ago

Because the officers of the bank are guilty of maybe 10% more garden variety bank greed than the average bank, while the real criminals here are the Silicon Valley CEOs who conspired to start a bank run and within 24 hours were demanding taxpayers fork over billions to clean up all their mess.

UncleEntity 4y ago
> …while the real criminals here are the Silicon Valley CEOs who conspired to start a bank run… Yeah, way to victim blame. Only an irrational person would “take one for the team” and leave their assets in an obviously failing bank. I mean, if only so-and-so had kept their mouth shut nobody would have noticed that some cryptodudes and dudettes had blown a few measly billion of their customers’ funds.
- fwlr 4y ago
  I mean, I’m much more concerned about the “immediately demanding taxpayers make them whole” bit.

anon84873628 4y ago

I think fwlr is doing a good job bringing actual data & detail to the conversation. They don't seem to be attempting to excuse or exonerate the bank officers, indeed they do call this behavior "dirty laundry". But they are fairly questioning whether the regulation would have actually prevented this scenario. If there is a subtext intended, it seems to be that the Fed didn't adhere to its previous assertions about how fast interest rates would rise, which is something that would undermine the stress tests.

fwlr 4y ago
> If there is a subtext intended, it seems to be that the Fed didn't adhere to its previous assertions about how fast interest rates would rise This is extremely perceptive! I do feel that way, and you know what? I didn’t fully realize that I did until you pointed it out. Yeah, two major activities of the Federal Reserve are “saying what it will do with interest rates in the next few years” and “changing interest rates”, it’s really bizarre that they can’t get these two to even remotely line up. I know they have to respond to fluctuating macroeconomic situations, but is that really enough to almost completely disconnect “their predictions of their actions” from “their actions”? It feels like a bit like a fig leaf, it kinda doesn’t pass a smell check.
- rstuart4133 4y ago
  Thanks for your contributions. I've been pondering the same thing. You've saved me a lot of effort. > Yeah, two major activities of the Federal Reserve are “saying what it will do with interest rates in the next few years” and “changing interest rates”, it’s really bizarre that they can’t get these two to even remotely line up. True, but it wasn't just the Federal Reserve. I live in Australia. It was exactly the same story here: https://www.afr.com/markets/equity-markets/why-the-rba-and-everyone-else-got-inflation-so-wrong-20220908-p5bgf2 https://www.afr.com/markets/equity-markets/why-the-rba-and-e... What I didn't realise is the Reserve Banks also operate in "hard mode" when it comes to economic predictions, just as the VC's did in this bank run: https://www.abc.net.au/news/2023-03-12/imf-how-we-missed-the-inflation-surge/102075588 https://www.abc.net.au/news/2023-03-12/imf-how-we-missed-the... So you can put this down to SVB operated on the best available advice, butt the best available advice was wrong. Well that, and their customer base was a bunch of lemmings.