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SVB leveraged cozy relationships to attract business than they could handle. They ignored compliance and normal banking risks. They left their C level risk mana

SVB leveraged cozy relationships to attract business than they could handle. They ignored compliance and normal banking risks. They left their C level risk management position open and we’re not transparent about their fiscal health. Rate risk is a key feature to buying any bond, and it’s a risk that is manageable if management isn’t asleep at the switch. Nobody forced SVB to buy long duration bonds. Any investor with a moderate level of expertise understands that, and you’d have to be pretty green to not expect rate increases from the all time lows. Blaming the government is a cop out. The job of finance professionals is to manage the assets in their custody responsibly.

polygamous_bat 4y ago
> Blaming the government is a cop out. The job of finance professionals is to manage the assets in their custody responsibly. Somehow I feel that blaming the government is much more than a cop-out; it's a calculated position that enables the big players to continue privatizing the wins and socializing the losses. "Of course we are getting a bailout", the narrative goes, "cause it was the big government's fault all along!"
- Spooky23 4y ago
  Of course. Outside of academia and some law schools, there’s no real conservatives. These guys will cry and whine for bailouts, cash the check and start crying and whining about government meddling.