FDIC Takes over Silicon Valley Bank

Re:FDIC Takes over Silicon Valley Bank by danielmarkbruce on Friday March 10, 2023 @03:55PM (#35100882)

And the $80 bill was about 40% of their assets. And their depositors are all businesses who will move the money out fast because it's not insured over 250k.

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Re:FDIC Takes over Silicon Valley Bank by disgruntledphd2 on Friday March 10, 2023 @05:02PM (#35101805)

Yeah, this is all very odd. What the hell happened there?

In retrospect, the Chief Risk Officer leaving and not being replaced immediately was a bad sign: https://fortune.com/2023/03/10/silicon-valley-bank-chief-ris...

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Re:FDIC Takes over Silicon Valley Bank by danielmarkbruce on Friday March 10, 2023 @06:06PM (#35102545)

That's a good find...

100% speculation: the CRO told them loading up on long term bonds was crazy, and that they'd just have to eat lower earnings. The CEO/CFO disagreed, and the CRO didn't want to have any part of it. Hindsight is 20/20, but... this really was a disaster waiting to happen.

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Re:FDIC Takes over Silicon Valley Bank by james_barton on Saturday March 11, 2023 @06:42AM (#35107456)

Not completely sure about that:

"A risk officer typically anticipates and manages regulatory, operational, competitive or other risks faced by a firm."

That looks like _non-financial_ risks. If that was the role of the CRO at SVB, the risk for this event probably should have been with the CFO?

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Re:FDIC Takes over Silicon Valley Bank by kortilla on Saturday March 11, 2023 @12:57PM (#35110793)

“Operational” at a bank includes financial risks.

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Re:FDIC Takes over Silicon Valley Bank by james_barton on Saturday March 11, 2023 @05:10PM (#35113308)

I know of at least one large European bank where it explicitly doesn't.

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