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Ask HN: How did risks of SVB's investments gone unnoticed?
A listed company always files quarterly/annual reports.
Considering SVB's stature and size, many trading firms & funds would have exposure to SVB .
How did risks of SVB's investments gone unnoticed for multiple quarters?.
Any thoughts?.
- BMc2020 4y agoThey failed to proof read before posting?
- selvan 4y agoWouldn't the details audited by accounting firms?
- mardiyah 4y agoIt's. It's deliberately concealed by its major authorities
- selvan 4y agoSounds like failure of financial due diligence. A proper due diligence could have uncovered the concealments.
- agnokapathetic 4y agoSVB CEO Greg Becker lobbied the government to relax some Dodd-Frank provisions on regional lenders in 2015. Trump did in 2018. https://fortune.com/2023/03/11/silicon-valley-bank-svb-ceo-greg-becker-dodd-frank-trump-rollback-systemically-important-fdic/ https://fortune.com/2023/03/11/silicon-valley-bank-svb-ceo-g...
- mo_42 4y agoIf you go to the casino, you don’t know how much money you’re going to loose. But you can calculate an expectation value because the odds are known. In the financial system, you cannot quantify your risk. It depends on many more factors (including human behavior) than rolling a dice. This is probably true for people working inside SVB. For people looking at the aggregated reports from the outside it’s worse or practically impossible to judge.
- nemothekid 4y agoThey were noticed; they were shorts on twitter in January.