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When the feds audited, why did they not advise on all the long term bonds at SVB??????
Posted on 3/18/23 at 8:24 pm
Posted on 3/18/23 at 8:24 pm
And why is no one asking this question. Surely they saw the idiots had over half their portfolio in 10 year bonds when the fed was raising rates every three months.
They could have easily spoken with them and arranged to have them repurchased/traded rather than wait til they had to fire sale them.
I mean, isnt that why we have the fed auditing banks in the first place?
Then again I saw a pic of two of the "fed" employees at the bank, one with a three piece brown suit, sneakers, hair covering his eyes and darn near shoulder length. And this is the guy in charge, I doubt he ever balanced a checkbook.
They could have easily spoken with them and arranged to have them repurchased/traded rather than wait til they had to fire sale them.
I mean, isnt that why we have the fed auditing banks in the first place?
Then again I saw a pic of two of the "fed" employees at the bank, one with a three piece brown suit, sneakers, hair covering his eyes and darn near shoulder length. And this is the guy in charge, I doubt he ever balanced a checkbook.
12
Posted on 3/18/23 at 8:30 pm to trinidadtiger
I know someone who works for the company that manages the 401k’s held by SVB.
FDIC froze all accounts
Therefore, if you were drawing monthly allowances, you no longer are.
Aka retired people that need the money to survive.
It’s not good baws. Hope it’s not more banks.
FDIC froze all accounts
Therefore, if you were drawing monthly allowances, you no longer are.
Aka retired people that need the money to survive.
It’s not good baws. Hope it’s not more banks.
Posted on 3/18/23 at 8:33 pm to trinidadtiger
That is a big question: Where was the San Francisco Fed when is responsible for supervision?
Posted on 3/18/23 at 8:45 pm to trinidadtiger
KPMG gave SVB a passing audit rating a couple of weeks ago. Technically it was for 2022 but if they couldn’t foresee the risk of the bank’s portfolio just a few months ago, something’s wrong.
Posted on 3/18/23 at 8:48 pm to BobABooey
KPMG audits exist to tell companies what they already know.
Posted on 3/18/23 at 8:50 pm to TigerAttorney
quote:
I know someone who works for the company that manages the 401k’s held by SVB.
FDIC froze all accounts
Therefore, if you were drawing monthly allowances, you no longer are.
Aka retired people that need the money to survive.
It’s not good baws. Hope it’s not more banks.
100% bullshite. Either you or your friend, or both, are morons.
Posted on 3/18/23 at 8:58 pm to deeprig9
When a bridge fails or a train derails the first thing they do is go find out who inspected it, and in this case Huntington is correct its the San Fran Fed, why is no one questioning them???????
Posted on 3/18/23 at 9:00 pm to trinidadtiger
BBC was talking to business owners on Friday and they said their wire transfers were going through like normal.
Posted on 3/18/23 at 9:06 pm to trinidadtiger
I think I read somewhere that SVB did not have a risk management executive but they had a DEI executive.
Posted on 3/18/23 at 9:23 pm to Oddibe
They did have some dei vp, I dont know about risk management. They only had one person on the board with banking experience.
But all that aside, you know why banks arent failing left and right like SVP......because they are fking idiots out buying 10 year bonds when the fed is raising rates every other hour.
And apparently the auditors from the fed were just as stupid.
But all that aside, you know why banks arent failing left and right like SVP......because they are fking idiots out buying 10 year bonds when the fed is raising rates every other hour.
And apparently the auditors from the fed were just as stupid.
Posted on 3/18/23 at 9:27 pm to Oddibe
quote:
think I read somewhere that SVB did not have a risk management executive but they had a DEI executive.
Correct. They have to have priorities.
Posted on 3/18/23 at 9:31 pm to trinidadtiger
I saw an article that stated 160 or so banks, most mid sized or regional have balance sheet mismatches - idiots bet on long duration and paying now.
Posted on 3/18/23 at 9:37 pm to BobABooey
quote:
KPMG gave SVB a passing audit rating a couple of weeks ago. Technically it was for 2022 but if they couldn’t foresee the risk of the bank’s portfolio just a few months ago, something’s wrong.
The examiners are the one who regulate the bank and would be interesting to see what SVBs CAMEL rating was—especially liquidity and interest rate sensitivity. There is a high probability that nothing was wrong with KPMG’s audit. The investment footnote properly disclosed the investment portfolio. The 10-K had the interest rate disclosure and risk factor.
It is not the auditor’s job to run the bank or to opine on the business strategy of the bank. The M in the CAMEL stands for management and the regulators 100% let this bank be very heavily dependent on depositors who in economic downturns burn cash as well as let management improperly ladder their portfolio.
This bank failed simply because there was a run on deposits that forced the liquidation of investments and incurred losses because the securities were underwater even though they were high credit quality investments. That’s not on KPMG but on the regulators. Nothing KPMG could do there but report the facts.
The regulators are getting their arse covered now as the Fed is offering a line of credit that is secured by a banks investment portfolios par values not market values. Had this been available to SVB possibly they would not have failed.
This post was edited on 3/18/23 at 9:39 pm
Posted on 3/18/23 at 9:40 pm to trinidadtiger
Regulatory audits swing back and forth - a decade ago it was all about adverse assets, allowance and charge offs.
Now, it is about non regulatory items - ESG, DEI, whistleblower programs, IT, management disclosures, etc.
This cycle is will be all about Asset Liability.
Now, it is about non regulatory items - ESG, DEI, whistleblower programs, IT, management disclosures, etc.
This cycle is will be all about Asset Liability.
Posted on 3/18/23 at 9:51 pm to trinidadtiger
You expect federal regulators (remember we have $31 trillion in debt to service) to discourage investing in treasury bonds? 
Posted on 3/18/23 at 9:53 pm to TigerAttorney
quote:Screw them. They’re all rich democrats and don’t deserve their money. They knew the risks.
Aka retired people that need the money to survive.
—your pal,
PT posters.
Posted on 3/18/23 at 10:46 pm to trinidadtiger
Feds are woke as well.
Posted on 3/18/23 at 10:57 pm to deeprig9
quote:
KPMG
The one company my big 4 wouldn't hire from... Shocking.
Auditors are generally kids 2-3 years out of unis like LUS and UGA that have no idea, at all, how businesses work. The Big 4 try to train you about fraud, by bringing in FBI alumni, etc., but everyone is only really worried about what gift they get and how drunk they can get during "training" at Universal Studios.
I can count on two fingers the partners that I worked for that had integrity and fought against clients, when they asked me to change assessment findings, (I didn't work in Audit, but the consultative side of the house.)
Sometimes, bringing in consultants is to force telling management what you already know, though. Management often will not listen to the odd dude saying, "We shouldn't give everyone in IT Enterprise Admin access," to no effect. When I tell you, from the outside, that you can put at risk nine figures of revenue, suddenly people sometimes care.
Posted on 3/19/23 at 6:51 am to trinidadtiger
quote:It's a wonder you could even see his hair.
hair covering his eyes and darn near shoulder length
This post was edited on 3/19/23 at 7:14 am
Posted on 3/19/23 at 7:19 am to trinidadtiger
quote:
When the feds audited, why did they not advise on all the long term bonds at SVB?
I don’t believe the Feds role is to help manage the risk in their investment portfolios. That’s what the Risk Manager is for at the bank. I’m not knowledgeable about this, but I would think the Fed is just auditing to make sure certain thresholds of reserves are maintained, and things like that. These days I wouldn’t be surprised if the Fed is auditing to make sure the bank has the right number of blue haired freaks.
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