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SIVB Bank Failure


Dalal.Holdings

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41 minutes ago, james22 said:

 

No question. 

 

 

Doesn't sound like the UK CRO did.

 

It may come out that she knew the UK executives knew the risks taken by the parent and were just hoping like hell for the best. So no reason to do her job.

It's somewhat moot.  The CRO reports to the CEO.  So if they didn't do their job or got overridden by CEO or committee it's ultimately CEO responsibility.  And she was CRO for the UK which for SIVB was a tiny sub (and first to get acquired).  Its not her responsibility to manage the risk of the parent (thats why you have a CRO at the parent). She is many levels removed.  You really can't blame that person for the failure of the parent.  That is really scraping the bottom of the wokeness barrel. 

Edited by dwy000
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However, insiders complained as the bank grew at breakneck speed, its top management became inordinately focused on social issues...

 

SVB executives were also deeply committed to social justice, according to several of its ex-employees. “I almost felt like I was at work on a college campus,” said another former executive, who recalled weekly internal “TED talks” on social issues and classes on “how to make sure you were not committing a microaggression”.

 

https://www.ft.com/content/6e23a2fb-484e-418d-b309-bf558b3a6a17

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Bloomberg says my boys over at FCNCA are in the data room at SIVB, might bid.  Prior "very low" bid during FDIC process was rejected.  They have helped FDIC resolve a lot of smaller bank assets over the years.  

Edited by CorpRaider
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4 hours ago, Xerxes said:

Great interview. 
 

folks call the recent SVB akin to tightening, Gundlach sees it as easing (disinflationary) as the bonds are being paid full face value (I am guessing he is referring to SVB securities portfolio)

 

 


@Xerxes, did you mean to say Gundlach thinks Fed/treasury giving banks par-value for their treasuries is inflationary not disinflationary?

Edited by LearningMachine
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The Fed does not give the banks par value for their securities, it lets them borrow in exchange for par value for the securities, but they still need to pay the current 4.5% ST interest rates. So this may solve some liquidity issues, but it becomes a negative carry trade and the banks will lose money doing so.

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