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marvelmon t1_jcm6d3c wrote

Reply to comment by chemicalrefugee in SVB blames remote work for bank failure by Loud_Adagio2222

Deregulation had nothing to do with it. SVB made bets that the interest rates would remain low. When interest rates were being raise by the Feds, they didn't have a risk manager to adjust their investments.

And who is going to pay for the bailout? Regular people through ever increasing bank fees.

Inflation happened under Biden. Higher interest rates happened under Biden. This had nothing to do with Trump.

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AttractiveNuisance37 t1_jcm6wh4 wrote

Except that stress testing and liquidity coverage ratios exist to prevent banks from gambling on rates the way SVB did.

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jointheredditarmy t1_jcmaumd wrote

So it’s been a while since school but I seem to remember it would not have. Treasuries are always considered risk free for capital calculation purposes. When rates go up 5 points in 9 months it’s anything but risk free. The thinking is that even if you have a duration mismatch, it will converge at some point, since the treasury will get paid back at some point, and that’s true until you have a bank run.

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BirdsbirdsBURDS t1_jcp4odc wrote

“Markets can remain irrational longer than you can remain solvent”. Can’t help but feel this lesson was learned before. Not too long ago.

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No-Carry-7886 t1_jco5auy wrote

Yo dumbass are you familiar with economics? I work for a bank and trade for a living lol and deregulation is absolutely what did it.

Imagine sticking up for banks lol

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