[Chico23231]

Lawrence H. Summers

@LHSummers
SVB committed one of the most elementary errors in banking: borrowing money in the short term and investing in the long term. When interest rates went up, the assets lost their value and put the institution in a problematic situation

SVB was incompetent and then the way they communicated their crunch, equally dumb. But good to know their Risk executive was heavily focused on woke projects instead of doing her job.

Also, maybe the government should hold some of the accounting firms responsible…as well as their own regulators in San Fran?

KPMG, one of the “big four” accounting firms, gave Silicon Valley Bank a clean bill of health just two weeks before the collapse, and the same firm offered an all’s good evaluation for Signature Bank eleven days before it collapsed.