The chairman of Whalen advisors has a most evocative way of describing the reckless behavior of Silicon Valley Bank, though I think that he is being rather unfair to drag performers.
They have way more integrity than bankers:
The now defunct Silicon Valley bank was a "hedge fund in drag," according to banking consultant Chris Whalen, chairman of Whalen Global Advisors.
"Why did they go long mortgage backs," Whalen said in an interview on CNBC on Thursday. "Because they knew that the warrants and the stuff that they really depended on for their earnings, which was tech companies, was going to have a bad year. So they figured, well the Fed's going to pivot, so let's load up on mortgage backs and hit one out of the park."
"That's not the way you're supposed to run a bank," Whalen continued. "They deserve what they got."
I do agree with the chairman, but I wish that his description was a bit more, "Woke."
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