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It appears the emerging consensus among the apologists is that SVB failed because the federal government, or the Fed specifically, over-regulated them by making
by cratermoon 4y ago
It appears the emerging consensus among the apologists is that SVB failed because the federal government, or the Fed specifically, over-regulated them by making them take certain positions, then pulled the rug out from under the by raising interest rates. In short, it wasn't the fault of the people running the bank.
In other news: https://www.nbcnews.com/business/business-news/etsy-delays-payments-sellers-due-silicon-valley-bank-collapse-rcna74475 https://www.nbcnews.com/business/business-news/etsy-delays-p...
- OrvalWintermute 4y agoI don't think there is any consensus on this issue. They clearly mismanaged their portfolio, since the Fixed Income approach towards interest rate risk is to hedge, and to use Bond Laddering, and utilize diversification. They did the exact opposite at the same time they permitted deposits to flow into the bank unchecked. This is a crisis of their own making 100%
- downrightmike 4y agoThe Dude who ran SVB into the ground also ran Lehman Bros into the ground, just saying, he should not be held responsible at some point.