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Apparently they are limited to investing 5% of the fund's money in banks. Turns out they used 2 of those 5% for investing in these banks. It is not a disaster
by fifilura 4y ago
Apparently they are limited to investing 5% of the fund's money in banks.
Turns out they used 2 of those 5% for investing in these banks.
It is not a disaster though, not even close to a disaster. And talking about banking and market economy, they most likely gained much more money from that than they lost. It just happened very quickly .
- YeBanKo 4y agoNot a disaster, but seems conspicuous. Looks like there is a connection between Signature and SVB and First Republic had a big exposure to SVB. So their risk exposure to a single entity such as SVB was pretty high for a pension fund.
- fifilura 4y agoOf course, they made a mistake. I think what they did was invest too heavily in up&coming banks rather than traditional banks. With the rationale that their technology was more modern.