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> just don’t have good risk managers They had no chief risk officer for 8 months. They argued publicly against stress testing banks. Their complete absence o
by psychlops 4y ago
> just don’t have good risk managers
They had no chief risk officer for 8 months. They argued publicly against stress testing banks. Their complete absence of hedging guaranteed that time bomb that would have gone off now or later.
- fnordpiglet 4y agoI agree 100% up to the point of the necessity of a bank run. I think they faced some serious quarterly losses for some time to come, but many banks see that without a run on the bank. That’s why I suspect someone large and influential in the startup world operated a bank run whisper campaign for their personal benefit. I’ve no proof, but I’ll wager $5 on it.
- psychlops 4y agoIt's entirely possible, but they wouldn't have been a random target. They put themselves into a very precarious position with the unhedged bets they made and the very selective client base they held. Consider that (nearly) all other banks weathered the storm just fine so far through correct risk management.