I spent a good portion of my career in banking and finance. A bank with significant concentration risk should never be caught with its pants down by interest rate hikes that were telegraphed. I don’t know because I wasn’t there, but the mere fact that SVB didn’t have a CRO tells me that they didn’t take risk all that seriously. Also, the…
I spent a good portion of my career in banking and finance. A bank with significant concentration risk should never be caught with its pants down by interest rate hikes that were telegraphed. I don’t know because I wasn’t there, but the mere fact that SVB didn’t have a CRO tells me that they didn’t take risk all that seriously.
Also, there’s the issue of oversight. The Fed oversees 750+ banks with--like every organization and institution--finite resources. They focus the resources dedicated to compliance on banks with systemic risk. I get that. But there’s got to be some mechanism that automatically triggers scrutiny of smaller banks.
I spent a good portion of my career in banking and finance. A bank with significant concentration risk should never be caught with its pants down by interest rate hikes that were telegraphed. I don’t know because I wasn’t there, but the mere fact that SVB didn’t have a CRO tells me that they didn’t take risk all that seriously.
Also, there’s the issue of oversight. The Fed oversees 750+ banks with--like every organization and institution--finite resources. They focus the resources dedicated to compliance on banks with systemic risk. I get that. But there’s got to be some mechanism that automatically triggers scrutiny of smaller banks.
Agree.