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SVB ended up on the wrong side of a trade and somehow it’s the feds fault? They knew that there were risks in their strategy and went ahead with it, rather tha
by comte7092 4y ago
SVB ended up on the wrong side of a trade and somehow it’s the feds fault?
They knew that there were risks in their strategy and went ahead with it, rather than hedging and forgoing profits. It’s not the feds job to make policy on the basis of how one bank is trading.
- bsuvc 4y agoAre you saying the deposit holders (customers of the bank) are to blame?
- comte7092 4y agoBlame for what? The bank failing? SVB was financially mismanaged by its leadership. They then handled the communications around their poor financial position very poorly. This lead to the immediate cause of the banks collapse, a textbook bank run. So, technically yes? The depositors who pulled their money were the immediate cause of the failure if we’re being simplistic. They pulled out a quarter of the deposits in a couple of days, no bank is going to be able to withstand that.