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.
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?
“Operational” at a bank includes financial risks.
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.
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...