damola93 t1_jc70lbr wrote
Reply to comment by The_Northern_Light in Silicon Valley Bank posted 'financial crimes' senior manager job listing just before closure by carolinaindian02
This is the weird part for me, that is typical of what you would see on WSB and not a bank holding 200 billion in deposits.
They also used legal accounting tricks to hide their unrealized losses on the bonds they bought.
The_Northern_Light t1_jc7x1g7 wrote
Exactly. It may or may not be criminally negligent but it sure smells like it is.
Saying they were “too safe” when they went so heavy on hold to maturity long duration treasuries when we were at zero overnight rate because “they were treasuries” is just delusional.
They were in the riskiest asset they could be without having additional reserve requirement and they were utterly unhedged. They saw a train coming and tied themselves to the tracks.
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