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March never ends. Let's run this month into the ground. So, an update from the Washington Post about Silicon Valley Bank. Newly released deets: internal risk modeling identified that they were being way too risky with their investments, so naturally, the bank execs changed the risk model to look at other things instead and cover up their assessment of risk. The degree of hubris is amazing. quote:In buying longer-term investments that paid more interest, SVB had fallen out of compliance with a key risk metric. An internal model showed that higher interest rates could have a devastating impact on the bank’s future earnings, according to two former employees familiar with the modeling who spoke on the condition of anonymity to describe confidential deliberations. https://www.washingtonpost.com/business/2023/04/02/svb-collapse-risk-model/ Unlocked link to avoid the paywall: Silicon Valley Bank’s risk model flashed red. So its executives changed it.
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# ¿ Apr 2, 2023 15:07 |
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# ¿ May 21, 2024 04:33 |