My pessimistic view is that bonuses were paid out on invested cash not on cash just sitting there. So they had to buy something to get a fat bonus.
Shocking portfolio design isn’t regulated given how much of banking is regulated.
As a bank, parking the money into long maturity bonds, especially when it's not your money, and your customer can take the money back anytime, and the current rates are 0% (so can go upward only...).
Sounds like an insane investment decision.
At least SVB _was_ diverse and inclusive. With extensive ESG virtue signaling. With that kind of pedigree, well, never you mind about making sound financial decisions.
What does ESG have to do with this? Seems like your politically motivated to see the world through one lens.
Re:FDIC Takes over Silicon Valley Bank
by kimbernator on Friday March 10, 2023 @05:47PM
(#35102336)
How is that relevant at all?
Not one mention on their values page of being responsible financial stewards. Only virtue signaling.
Bond traders are generally old white male republicans
This is a pretty insane bet. Why didn’t they ladder the maturities to have a lower average duration and less risk?