Re:FDIC Takes over Silicon Valley Bank
by adam_arthur on Friday March 10, 2023 @06:33PM
(#35102834)
There was no explicit need or requirement for SVB to buy MBS at 1% yield, yes. Poor management handling too much money.
They also could have hedged the interest rate risk. Likely there will be policy change as a result of this. Banks over some AUM requiring stricter regulations
The Fed is complicit in encouraging moral hazard through distortion of the bond market. Pretty much every crisis in the modern era is precipitated by fed policy from years earlier
They also could have hedged the interest rate risk. Likely there will be policy change as a result of this. Banks over some AUM requiring stricter regulations
The Fed is complicit in encouraging moral hazard through distortion of the bond market. Pretty much every crisis in the modern era is precipitated by fed policy from years earlier