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Twitter haters are insane. Lets blame Twitter for Global warming. Twitter has done nothing but support the economy. It is operating at peak efficiency right now. The deal weight has been let go an we are doing great!
@4uxt+1lCiw5dn The point is SVB were overleveraged due to their own incompetence. The risk management czar (the role that is ultimately responsible for maintaining a healthy balance sheet) had no qualifying experience for the job but checked enough of the right identity boxes to get hired anyway.
Given that DEI initiatives and "social justice" fads were clearly priority for SVB, nobody had their eyes on the balance sheet as the company was selling off long-term bonds at a loss while account holders were emptying their accounts due to the downturn in the tech industry. How long did they think they were going to pay depositors? They didn't think, because like every other progressive mo--n, they were more concerned with activism than actually doing their jobs.
"It wasn't twitter that made SVB buy all those 30 year bonds and sell them off at a haircut." It wasn't DEI or Pride Month, either.
There's no need for complex explanations. The simplest explanation is: these weren't good bankers. They were at risk of interest rates rising. They didn't manage their risk -- which is a banker's job.
Twitter may have had some effect. We're all more connected nowadays. Twitter, and other media, didn't cause the crisis -- but they may have made it happen faster.
I assume this was meant to be a comedy piece.
This is the d-mbest thing I've ever heard
SVB was invested in DEI instead of running a bank. That’s what ki-led SVB. Americans would be best served by staying away from all the big banks and dealing with local credit unions that actually do banking.
SVB's poor investment strategy dug their grave. With so much capital flowing in they had no plan on how to best invest those funds. But they are not victims of a bank run. This was no surprise. Just look at all the inside sales of shares the week prior. They saw it coming.
it wasn't twitter that made SVB buy all those 30 year bonds and sell them off at a haircut to cover their depositor's withdrawals. maybe they SVB should've spent less time worrying about pride month and instead exercised an elementary school understanding of risk management.