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_Everybody_ in banking is supposed to be aware that if the interest rate goes up the spot or mark-to-market value of a bond goes down. This is not something complicated like Black-Scholes.

Everybody in banking is able to see the inflation prints and aware that increasing inflation may cause the central bank to raise rates. A bunch of people failed to spot this and have since been sacked and/or lost their equity in SVB.



They didn't fail to spot it. They just didn't anticipate them to be so drastic in such a short time span. It's barely a week ago Jerome Powell said their own prognoses were still wrong.


In other words, white collar "criminal-esque activity" gets a free pass.




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