Quote:
Originally Posted by TheRealBadger
First, none of that is relevant to this bank failure. I suspect you already know that.
Second, it’s kind of sad when people get upset when businesses are trying to focus on including 75% of the population by somehow saying they aren’t the most qualified. Only a business idiot would intentionally exclude 75% of the talent pool.
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I'll try one time, and then go.
It is relevant in the fact that their C-Suite exhibited some of the worst decisions imaginable in their investment and risk strategies. They had ample chance in early 22 to cut their losses on the bonds incrementally and not cause the run they did when they took the big loss all at once. They had a full year to fix this risk, that has been fairly obvious for over a year to even us idiots. Rates go up, fixed returns go down. Stupid easy.
I worked for a company based in CA that had 3000 technical employees. As a senior manager, I was told that I always should hire the best qualified. So when a package went forward to HR (People Ops for the PC folks), I was almost always grilled on my choice if it did not fit into a protected class. I was asked to "look again", or, "are you sure there's nobody else as well qualified?" These questions were always asked by a non-technical person. Look, I need someone who is able to provide a detailed analysis on a flyback dc/dc converter in less than two days for a billion dollar spacecraft that is paid for by tax dollars. Excuse me if I don't give a flying **** what the hired person's sex, race, creed, religion, sexual preference, or anything else is. I want the absolute best I can find, and I regularly paid top dollar to get them.
Back to SVB. They could have survived this independent of the current inflation that crippled their long-term bond sale. They did not. If I was an investor/depositor whom stood to lose big money, I would subpoena all of their hiring records, including interviews and decision meetings to ensure they utilized a strategy that was always in my best interest.
Small addition...
The .gov buying the liability is no better than the student loan buyout.