“You guys might want to fact check your information on the SVB episodes. “Failing to balance assets and liabilities” isn’t even a coherent statement by joe. Plenty of banks have substantial IRR right now because of the whipsaw that we saw with COVID low rates to the rising rate environment that we have now. Depending on when they purchased those securities that could have been the right decision at the time but you guys COMPLETELY glossed over this fact. This failure was due to $42 billion, or 30% of their deposit base leaving the bank within 24 hours. No amount of regulatory oversight can stop a bank from failing at that point, period. Anyone that says otherwise is a liar or woefully incompetent.
In ADDITION, your host who is supposedly an “expert” talks about how treasuries are risk weighted at 0% however the MAJORITY of their securities on their balance sheet were not treasuries they were GSE MBSs which are weighted at 20% so he doesn’t even know how to read a call report and is just making a blanket statement that “regulation is broken” what an absolute joke.”
Lns1212 via Apple Podcasts ·
United States of America ·
03/16/23