Politics And Current Events

[faftorial]

No, poor liquidity risk management caused the failure.

You’re supposed to hedge so that your bank doesn’t fail when your bonds lose value

Shyster's post looking the blame the fed.

[Shyster]

Please. Politicians of all stripes have been telling us for decades that gov bonds are the most secure investments ever and that the US government has never defaulted on its debt. No one has ever been accused of poor risk management by investing in government bonds. And the only reason those bonds have lost value is government action. The federal government caused this bank failure.

[willeyeam]

You need to either do better if you're trolling or just watch less fox news if not. Idk which one

[Shyster]

No, poor liquidity risk management caused the failure.

You’re supposed to hedge so that your bank doesn’t fail when your bonds lose value

Shyster's post looking the blame the fed.

The fed (and the fedgov) caused the inflation, which caused the bonds to lose value, which caused the investment loss, which caused the bank failure. When A is the direct cause of B, and B is the direct cause of C, and C is the direct cause of D, then A (the fed) is the cause of D (the bank failure).

[MrKennethTKangaroo]

I try not to miss a chance to bash the Fed for injecting the American masses with the opiate known as low interest rates

But this isn't the feds fault not by a long shot

[count2infinity]

It’s weird how not every bank in the country is in crisis mode since the interest rates apply to all of them.

[Troy Loney]

Please. Politicians of all stripes have been telling us for decades that gov bonds are the most secure investments ever and that the US government has never defaulted on its debt. No one has ever been accused of poor risk management by investing in government bonds. And the only reason those bonds have lost value is government action. The federal government caused this bank failure.

And “they” also tell everyone investing money to diversify. Probably a concept more fundamental than the strength of the us treasury bond

[NTP66]

Yes, very weird. It's almost as if this particular bank didn't properly evaluate their risk when taking on that debt.

[MR25]

That would be because the previous admon loosened the regulations

[Dickie Dunn]

Lol the government's fault

[Dickie Dunn]

Rumors going strong that PNC is going to acquire SVB.

[count2infinity]

Hold up… the fed didn’t cause PNC to go under AND they’re a “woke” bank? Heads are exploding right now.

[willeyeam]

The woke mob is controlling the banking industry now

[willeyeam]

Just how Soros drew it up

[NTP66]

“…but I’ll continue to refuse to testify against him, and will support and vote for him if he’s the 2024 nominee.”

[Troy Loney]

I really don’t think it’s a coincidence that a bank that established itself to cater to vcs and startups didn’t establish sound risk management functions.

Like, you can try to make this something bigger than it is. But normal (real) banks have disciplined routines that manage credit and liquidity risk. Sounds like this bank just ignored those principles and dumped most of their reserves into treasury bonds.

It’s like, “we’ll show them, why do we need to pay economics and finance guys, when they’re just going to tell us to put it into bonds anyways”

[Troy Loney]

Also sounds like a bunch of startups had all their deposits in just this bank? Like Roku might be screwed or something.

Another normal thing that smart companies do is use different banks to ensure their deposits are all fdic insured. This is all just lazy **** because all these companies are run by tech guys that think they’re smarter than everyone and don’t have to do things that actual smart companies do.

[MalkinIsMyHomeboy]

this is what the sleuths have discovered

[NTP66]

Peter Thiel pulled his money out days before the collapse, as did his buddies. I’m sure there was no insider information on this at all, it’s just pure coincidence. Yes, pure coincidence.

[Viva la Ben]

Very principled behavior.

[Dickie Dunn]

Also sounds like a bunch of startups had all their deposits in just this bank? Like Roku might be screwed or something.

Another normal thing that smart companies do is use different banks to ensure their deposits are all fdic insured. This is all just lazy **** because all these companies are run by tech guys that think they’re smarter than everyone and don’t have to do things that actual smart companies do.

65,000 startup companies had their deposits in SVB. 96% of their accounts are too large for full FDIC coverage. That number at BofA is 38%. Everything about their risk management and diversification is a joke.

[NTP66]

But why didn’t the government make sure this didn’t happen? Thanks, Biden!

[faftorial]

“…but I’ll continue to refuse to testify against him, and will support and vote for him if he’s the 2024 nominee.”

Pence seems to think if he shames Trump he'll drop out of the race.

[Troy Loney]

this is what the sleuths have discovered

Knew it, too woke

[crusherstasiak]

this stuff isn't of much interest to me but from what i've gathered would it be at in the ballpark to conclude that these tech gazzilionnaires are all for privatization when it comes to their wealth and socialism when it comes to to their debt? or so it seems to me anyway