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Key quote from the FT article (cited by Axios): SVB made the fatal decision in 2021 to make a bigger-than-average bet on long-dated securities at the same time
by MilnerRoute 4y ago
Key quote from the FT article (cited by Axios):
SVB made the fatal decision in 2021 to make a bigger-than-average bet on long-dated securities at the same time it embraced a working structure that meant its executives were scattered across the US, even while aggressively pursuing an expansion to become a full-service bank.
“It is harder to have a challenging call over Zoom. It makes it harder to challenge management,” said Nicholas Bloom, a professor at Stanford University who has studied remote working extensively. “Ideas like hedging interest rate risk often come up over lunch or in small meetings.”
- orwin 4y agoMy experience working at a bank during covid is that management is way more likely to fire the most competent person - who know everything about how and especially why stuff is done a certain way, who have all contacts at every level in both infra and cybersec teams, who push his team to stop working Friday afternoon to share what he knows - after he called their ideas dumb (with kinder words ofc) in person than on zoom.