Re:Silicon Valley Bank paid out bonuses hours before seizure
by bequanna on Saturday March 11, 2023 @05:56PM
(#35113645)
Since I hear a lot of people calling out the Fed, Let’s be perfectly clear about who is to blame.
SVB chose to invest in 10-year duration MBS that was yielding only 1.5% when higher rates were known to be just around the corner. The risk/reward in no way made sense.
SVB chose to invest in 10-year duration MBS that was yielding only 1.5% when higher rates were known to be just around the corner. The risk/reward in no way made sense.
Simple incompetence and/or greed.