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SVB truly was picking up pennies in front of a steamroller

Posted on 3/12/23 at 1:49 pm
Posted by rickgrimes
Member since Jan 2011
4340 posts
Posted on 3/12/23 at 1:49 pm
quote:

Its strategy to invest deposits in long-term fixed rate bonds — without hedging — was to make an extra 0.4% yield.



LINK
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52525 posts
Posted on 3/12/23 at 1:54 pm to
The risk department has some explaining
Posted by rocksteady
Member since Sep 2013
2949 posts
Posted on 3/12/23 at 1:55 pm to
Who’s the hedge fund short seller that warned of this? I’d like to read more of what he has to say about things
Posted by Geauxldilocks
Member since Aug 2018
6533 posts
Posted on 3/12/23 at 2:29 pm to
quote:

The risk department has some explaining


SVB lent to woke startups that worship at the altar of climate change and LBGTQ initiatives. No surprise how this ended.
Posted by catfish 62
Atlanta
Member since Mar 2010
5703 posts
Posted on 3/12/23 at 2:30 pm to
quote:

The risk department has some explaining


The one that went without a leader for 8 months ?
Posted by KillTheGophers
Member since Jan 2016
6782 posts
Posted on 3/12/23 at 2:32 pm to
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
41085 posts
Posted on 3/12/23 at 2:40 pm to
quote:

SVB lent to woke startups that worship at the altar of climate change and LBGTQ initiatives. No surprise how this ended.



We got it baw
Posted by SoonerK
Member since Nov 2021
1014 posts
Posted on 3/12/23 at 2:54 pm to
quote:

SVB lent to woke startups that worship at the altar of climate change and LBGTQ initiatives. No surprise how this ended.

SVB failing had nothing to do with who they lent money to, but keep looking ignorant.
Posted by Geauxldilocks
Member since Aug 2018
6533 posts
Posted on 3/12/23 at 3:06 pm to
quote:

SVB failing had nothing to do with who they lent money to, but keep looking ignorant.


I going to guess the founder of Home Depot is just a touch sharper than you, so it’s debatable as to who is ignorant:

LINK
Posted by BigApple
Member since Jun 2022
889 posts
Posted on 3/12/23 at 3:18 pm to
Where does he say that is why this bank failed
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
476619 posts
Posted on 3/12/23 at 3:22 pm to
quote:

SVB lent to woke startups that worship at the altar of climate change and LBGTQ initiatives. No surprise how this ended.

What does this have to do with why SVB failed?
Posted by Ross
Member since Oct 2007
47827 posts
Posted on 3/12/23 at 3:29 pm to
He must have a point, he used like three or four buzzwords.
Posted by baldona
Florida
Member since Feb 2016
24206 posts
Posted on 3/12/23 at 3:50 pm to
quote:

What does this have to do with why SVB failed?


Politics aside, their lending to start ups is why they were heavy into TBills that got them into this mess. So it’s not all wrong. I don’t have a clue about the political nonsense of it all.
Posted by 1609tiger
Member since Feb 2011
3808 posts
Posted on 3/12/23 at 4:04 pm to
they were heavy into TBills that got them into this mess.

Come on people. It wasn’t TBills ( with one year maturities by definition). They had an average maturity of over 9 years in their portfolio.
Posted by baldona
Florida
Member since Feb 2016
24206 posts
Posted on 3/12/23 at 4:21 pm to
quote:

Come on people. It wasn’t TBills ( with one year maturities by definition). They had an average maturity of over 9 years in their portfolio.


Correct, poor wording on my end. Same difference just different time frames like you said.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52525 posts
Posted on 3/12/23 at 5:21 pm to
quote:

SVB failing had nothing to do with who they lent money to, but keep looking ignorant.


Mostly true, it had a lot to do with who they chose to do business with.

Companies like Circle who is listed as their biggest depositor who have had to make massive withdraws with the downturn in the crypto market. Who still has 3.3B dollars they want to get out of SVB.
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