SVB was an obvious mess- poor risk management strategy, poor funding strategy, concentration risk..aside from silly politics over woke lending or such nonsense, there may be some good from it- a kick in the rear to an entitled generation showing bad things can happen..
Was a senior banker thru my career….risk manger, investment banker….CSFB was perennial risk taker investing and following with its balance sheet to lend…it’s been burned thru years…in the US small banks come and go….frankly the new tech industry is populated by big egos, big brains…little long haul experience …so dot com layoffs seem huge but aren’t really ..except to the affected…a bit of financial Darwin isn’t all bad…maybe all the excess liquidity in markets will turn to actual value on operations vs appreciation…venture cap can return to being angels for new ideas vs trying to profit once names are in sphere of influencers
Excellent reporting. CEOs and their minions should be paid a salary and all options or shareholdings should be considered long-term investments, the holding period of at least 5 years. Short-term profits must be taken out of the equation along with excessive risk taking. Billions can be moved electronically in a nano-second, so banks need that liquidity (asset liability management controls) and/or access to Central Banks. The guard rails must be re-assessed. Just brace yourself for crypto losses in the future.
It's like the song 'Where have all the flowers gone - quote: When will they ever learn, when will THEY EVER learn." USA has to jack up its banking system or this will be the 'death' of that country (if Trump doesn't do it first) FAITH in the banking system is a 'universal' need - Just another neglect attitude by the mighty USA including 'gun' control. Obviously, 'Mericans are not as smart as they think they are when they keep tripping all over themselves to be divided and NOT in focus!
SVB was an obvious mess- poor risk management strategy, poor funding strategy, concentration risk..aside from silly politics over woke lending or such nonsense, there may be some good from it- a kick in the rear to an entitled generation showing bad things can happen..
Was a senior banker thru my career….risk manger, investment banker….CSFB was perennial risk taker investing and following with its balance sheet to lend…it’s been burned thru years…in the US small banks come and go….frankly the new tech industry is populated by big egos, big brains…little long haul experience …so dot com layoffs seem huge but aren’t really ..except to the affected…a bit of financial Darwin isn’t all bad…maybe all the excess liquidity in markets will turn to actual value on operations vs appreciation…venture cap can return to being angels for new ideas vs trying to profit once names are in sphere of influencers
Go woke, go broke
Excellent reporting. CEOs and their minions should be paid a salary and all options or shareholdings should be considered long-term investments, the holding period of at least 5 years. Short-term profits must be taken out of the equation along with excessive risk taking. Billions can be moved electronically in a nano-second, so banks need that liquidity (asset liability management controls) and/or access to Central Banks. The guard rails must be re-assessed. Just brace yourself for crypto losses in the future.
It's like the song 'Where have all the flowers gone - quote: When will they ever learn, when will THEY EVER learn." USA has to jack up its banking system or this will be the 'death' of that country (if Trump doesn't do it first) FAITH in the banking system is a 'universal' need - Just another neglect attitude by the mighty USA including 'gun' control. Obviously, 'Mericans are not as smart as they think they are when they keep tripping all over themselves to be divided and NOT in focus!
Hmmm....it would appear that both episodes are caused by the failure of banks to mark to market