Fed Guy: SVB was particularly poorly run

Re:Fed Guy: SVB was particularly poorly run by MuffinFlavored on Monday March 20, 2023 @01:58PM (#35235750)

> That said, it seems the core of the issue was that SVB wasn't properly hedged against interest rate hikes.

Not being sarcastic or implying anything: who could have predicted interest rate hikes at the time SVB was being pushed to generate yield/return on their assets (like 2020-2021 if I understand correctly)? In hindsight, what should they have done? Who/what forces drove them to park lots of $ into MBS yielding 1.5% or whatever? What should they have done instead once Fed start hiking interest rates, sell at a smaller loss then? Maybe they didn't believe the Fed?

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Re:Fed Guy: SVB was particularly poorly run by JumpCrisscross on Monday March 20, 2023 @03:26PM (#35237237)

There was legitimate groupthink in the Valley that thought the Fed couldn’t raise rates because it would bankrupt the government or some related nonsense. I doubt that permeated SVB’s senior management. But I wouldn’t be incredulous if it had.

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