They could have hedged and marked to market though. In that case, the accounting would have said they were fine, and they would actually have been fine. In rea

They could have hedged and marked to market though. In that case, the accounting would have said they were fine, and they would actually have been fine. In reality, they didn't hedge, and they used the HTM accounting treatment. So the accounting still said they were fine, since that permitted them to ignore the loss when interest rates increased; but accounting doesn't change reality, so they actually weren't fine and they blew up.