We got a bank collapse y'all

bigben14

OT Supporter
Jun 10, 2007
3,651
The first 30 seconds is just pearl clutching nonsense
You're arguing with someone that is comparing the journalistic integrity of fox news and comedy central, and are confused that their point is inane gibberish?
 

sans_pants

I don't want any damn vegetables
OT Supporter
May 2, 2002
130,402
you guys are just proving him correct by laughing at his stupid garbage
 

stevezissou

OT Supporter
Jul 15, 2009
42,611
US
Inadequacy of Disclosures about Liquidity Risks

Another problem about the bank run has to do with inadequate disclosure requirements related to liquidity risks, Baumann explained.

Companies must disclose high level of credit risk if there could be a problem. But the disclosure requirement is not the same for risk disclosure for deposits. SVB had a concentration of deposit risk, deposits from many high-tech companies.

“So, if for some reason, these high-tech companies, venture capital companies were worried about their cash sitting in SVB, and they took the cash out, it’s one industry that would be taking it out quickly. I think there could be an accounting question here,” he said, “whether the SEC and FASB have adequately assessed the need to discuss liquidity risk in the financial statements that you can lose all your depositors at one time because they have similar characteristics.”

The Securities and Exchange Commission, as the capital markets regulator, oversees both the PCAOB and the FASB.

“While the SEC might say ‘well we have all kinds of risk disclosure requirements.’ But they are not in the financial statements,” Baumann said.

Some may argue that things happened so fast. But Baumann questioned that argument.

“Then I go back to: are there inadequate accounting disclosure requirements in the financial statements about the mismatch, the duration risks between assets and liabilities? So that when people read the financial statements, they will understand the risk of the duration spread on a bank’s financial condition – especially coupled with a high concentration of similar large depositors,” he explained.

 

intro_vert13

fuck them kids
OT Supporter
Feb 26, 2005
35,026
an offshore haven somewhere
Inadequacy of Disclosures about Liquidity Risks

Another problem about the bank run has to do with inadequate disclosure requirements related to liquidity risks, Baumann explained.

Companies must disclose high level of credit risk if there could be a problem. But the disclosure requirement is not the same for risk disclosure for deposits. SVB had a concentration of deposit risk, deposits from many high-tech companies.

“So, if for some reason, these high-tech companies, venture capital companies were worried about their cash sitting in SVB, and they took the cash out, it’s one industry that would be taking it out quickly. I think there could be an accounting question here,” he said, “whether the SEC and FASB have adequately assessed the need to discuss liquidity risk in the financial statements that you can lose all your depositors at one time because they have similar characteristics.”

The Securities and Exchange Commission, as the capital markets regulator, oversees both the PCAOB and the FASB.

“While the SEC might say ‘well we have all kinds of risk disclosure requirements.’ But they are not in the financial statements,” Baumann said.

Some may argue that things happened so fast. But Baumann questioned that argument.

“Then I go back to: are there inadequate accounting disclosure requirements in the financial statements about the mismatch, the duration risks between assets and liabilities? So that when people read the financial statements, they will understand the risk of the duration spread on a bank’s financial condition – especially coupled with a high concentration of similar large depositors,” he explained.

those alphabet soup organizations employ some of the dumbest, most parasitic people alive

and you're in service to them lmao
 

Users who are viewing this thread

About Us

  • Please do not post anything that violates any Local, State, Federal or International Laws. Your privacy is protected. You have the right to be forgotten. Site funded by advertising, link monetization and member support.
OT v15.14.0 Copyright © 2000-2023 Offtopic.com
Served by fx.offtopic.com

Online statistics

Members online
405
Guests online
113
Total visitors
518

Forum statistics

Threads
80,524
Messages
7,852,964
Members
87,109
Latest member
Ak907Queen