We got a bank collapse y'all

[stevezissou]

An outstanding ESG rating - but no chief risk operator: SVB hired woke board obsessed with diversity, invested $5BN for ‘healthier planet’ and held monthlong Pride celebration —but failed to spot glaring problems with investments​

• Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups
• But for eight months last year, the bank did not have a chief risk operator
• At the time, it was investing clients' money in low-interest government bonds and securities that saw their value fall when interest rates rose

SVB hired woke board obsessed with diversity

Silicon Valley Bank had an A rating for its Environmental, Social and Governance policies as it increased diversity and invested in sustainability startups.

www.dailymail.co.uk

I

@buttslut already posted this I think

It seems like having a good ESG rating and not having a risk officer are not one in the same issue

Was it a portfolio full of high risk investments?


No no, let’s blame it on woke stuff.

Nah fam. I'm normally with you but interest rate risk isn't some new concept. And loading up on bonds when rates are historically low should have raised some alarms to any principaled risk manager. But clearly they had incompetent risk management. That's on the bank not the fed.

It took the GOP all weekend to come up with this???

“This was a failure by the bank’s risk-management committee,” Granovsky said. “SVB is not a traditional bank. They had a very high concentration of customers who were brought in by the venture capitalists. … In reality, left to their own devices, startup companies would have picked many other banks to host their accounts.”

Regional banks are seeing flight of deposits to too-big-to-fail megabanks

The unexpected closure of Signature Bank over the weekend sparked a shoot-first-ask-questions-later mentality by investors as deposits flowed to biggest banks.

www.marketwatch.com

 

[Ron]

“This was a failure by the bank’s risk-management committee,” Granovsky said. “SVB is not a traditional bank. They had a very high concentration of customers who were brought in by the venture capitalists. … In reality, left to their own devices, startup companies would have picked many other banks to host their accounts.”

Regional banks are seeing flight of deposits to too-big-to-fail megabanks

The unexpected closure of Signature Bank over the weekend sparked a shoot-first-ask-questions-later mentality by investors as deposits flowed to biggest banks.

www.marketwatch.com

So again, nothing to do with being “woke”

Unless that paywall’d article has something more substantial to say

 

[saabguy]

Nah fam. I'm normally with you but interest rate risk isn't some new concept. And loading up on bonds when rates are historically low should have raised some alarms to any principaled risk manager. But clearly they had incompetent risk management. That's on the bank not the fed.

 

[Das_Ubermensch]

People getting woke to the fact that 45's gutting of banking regulations contributed to this happening. Americans more worried about whether the woman across the table is packing a dick than they are about the bedrock of their financial system

 

[Kafka]

People getting woke to the fact that 45's gutting of banking regulations contributed to this happening. Americans more worried about whether the woman across the table is packing a dick than they are about the bedrock of their financial system

Deregulation in the finance and banking industries has been happening in both dem and republican admins since Greenspan and his mentors tbh. It’s a feature of neoliberalism which the majority of both parties embrace.

 

[stevezissou]

So again, nothing to do with being “woke”

Unless that paywall’d article has something more substantial to say

Or their focus was on "other things" versus having key positions filled "such as chief risk officer" that they went without for 8 months.

 

[Dylith]

Or their focus was on "other things" versus having key positions filled "such as chief risk officer" that they went without for 8 months.

Pretty heavy speculation there. Have any supporting info to back that claim up?

 

[rcm]

Pretty heavy speculation there. Have any supporting info to back that claim up?

They promoted diversity and also they're a failed bank

Therefore promoting diversity results in a failed bank

Seems like pretty obvious logic to me imho

 

[Dylith]

They promoted diversity and also they're a failed bank

Therefore promoting diversity results in a failed bank

Seems like pretty obvious logic to me imho

 

[Ron]

Or their focus was on "other things" versus having key positions filled "such as chief risk officer" that they went without for 8 months.

They were a shitty bank run by the same people that led the 2008 collapse

I don’t remember Lehman brothers being criticized for being too woke

 

[stevezissou]

They were a shitty bank run by the same people that led the 2008 collapse

I don’t remember Lehman brothers being criticized for being too woke

I do agree with you there.

Execs/board members from these failed banks should be banned from working at or serving on any boards at any FDIC institutions.

Lifetime ban.

 

[ludewig]

 

[Ron]

God I wish Charlie Kirk’s face would just implode already

 

[memyselfandi]

They could use this time to take a serious look at the factors that caused the problem. Or they can rile their base up with stupid "wokeness is killing the banks" nonsense. So of course we now have to spend years hearing about how wokeness, and not corporate greed and deregulation, killed the banks.

 

[Sypha923]

I do agree with you there.

Execs/board members from these failed banks should be banned from working at or serving on any boards at any FDIC institutions.

Lifetime ban.

Death to them would do that less chance for them to continue.

 

[stevezissou]

A good friend’s brother just lost his Commercial Lending job at Signature Bank. Yikes.

Did you friend star in their music video?

 

[Cicada]

 

[Cicada]

Did you friend star in their music video?

What the fuck did I just watch

 

[stevezissou]

What the fuck did I just watch

There's more

 

[ludewig]

A chief risk officer is an assessor and an advisor to the bank. They don't have direct authority over the banks investments. If a bank's management is bone-headedly set on making risky investments then it's not surprising their CRO left and it took them forever to find a replacement they were willing to accept (e.g., one that was okay with the risk profile the bank already had).

 

[whatever]

A chief risk officer is an assessor and an advisor to the bank. They don't have direct authority over the banks investments. If a bank's management is bone-headedly set on making risky investments then it's not surprising their CRO left and it took them forever to find a replacement they were willing to accept (e.g., one that was okay with the risk profile the bank already had).

do you consider that the canary in a mine?

 

[Cicada]

do you consider that the canary in a mine?

BACK IN THE HOLE

 

[Actvs Dei]

not covered for FDIC payout IIRC

yeah but its not like the building burned down or is the movie the Bank Job cant they just provide access at some point?

 

[saabguy]

This happens a lot in the real estate industry

Interesting username for this reply…

 

[MWHC22]

I mean I suppose.

Government made money off the loans in 2008 tho, so I really don’t see the problem.

I get that it’s “unfair”, but at the same time it makes all the sense in the world

wot in tarnation are you even arguing here? :rof:

goldman sachs was told they had to take a loan to meet the new capital requirements... they invested the money from the loan and basically doubled it and then paid off the loan in 6 months.
argue something better. government is making money off student loans too but i don't see anyone approving that in under a week
also the PROBLEM is that the bailouts increased our national debt... so i dunno how much money you think the government made off the loans in 2008

Nah fam. I'm normally with you but interest rate risk isn't some new concept. And loading up on bonds when rates are historically low should have raised some alarms to any principaled risk manager. But clearly they had incompetent risk management. That's on the bank not the fed.

facts... you don't weild billions of dollars of investments without knowing the various types of risks you are taking and how to handle them. they bet wrong and lost... and now others have to pay the price for them being dumb...again