re: When the feds audited, why did they not advise on all the long term bonds at SVB??????

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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.

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I've listened to a couple of financial gurus comment on the SVB collapse and they said the losses on SVB's long bonds/treasuries could have been easily protected with puts, they mentioned another strategy or two that could have also spread the risk but I don't recall what it was. The bottom line was the people running the bank were careless managing risk and the long bonds/treasuries getting crushed with rising interest rates became unmanageable.