Saab-free since 2013. Mortgage guru
- Aug 11, 2003
They weren’t leveraged with risky investments.I don’t work in finance, so let me ask this to you or anyone else who’s more knowledgeable than me:
Were there or were there not regulations under Trump that were relaxed that allowed a bank to carry this level of risk in their investment portfolio?
They had money tied up in bonds, but the value of those bonds went to shit when the fed rapidly increased interest rates. They were holding a portfolio of bonds with a 2% yield…what is that bond worth today when investors are buying bonds with a 5-6% yield?
Their assets tanked in value. That tanked the stock. People got scared and took their money out, and now here we are.
From what I’ve been reading they were a pretty solid bank that ultimately had their legs cut out from under them by Powell and the fed.