Ask HN: How did risks of SVB's investments gone unnoticed?

3 pointsby selvan3 lata temu7 comments

A listed company always files quarterly/annual reports.

Considering SVB's stature and size, many trading firms & funds would have exposure to SVB .

How did risks of SVB's investments gone unnoticed for multiple quarters?.

Any thoughts?.

7 comments

mo_423 lata temu

If you go to the casino, you don’t know how much money you’re going to loose. But you can calculate an expectation value because the odds are known. In the financial system, you cannot quantify your risk. It depends on many more factors (including human behavior) than rolling a dice.

This is probably true for people working inside SVB. For people looking at the aggregated reports from the outside it’s worse or practically impossible to judge.

nemothekid3 lata temu

They were noticed; they were shorts on twitter in January.

mardiyah3 lata temu

It's.

It's deliberately concealed by its major authorities

selvan3 lata temu

Sounds like failure of financial due diligence. A proper due diligence could have uncovered the concealments.

BMc20203 lata temu

They failed to proof read before posting?

selvan3 lata temu

Wouldn't the details audited by accounting firms?

agnokapathetic3 lata temu

SVB CEO Greg Becker lobbied the government to relax some Dodd-Frank provisions on regional lenders in 2015. Trump did in 2018.

https://fortune.com/2023/03/11/silicon-valley-bank-svb-ceo-g...