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SVB shows the perils of regulators fighting the last war
Worries have focused on credit and liquidity risks rather than interest rates
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A line of clients outside the entrance to Silicon Valley Bank's headquarters in Santa Clara, California, on Monday.
PHOTO: NYTIMES
Gillian Tett
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How could regulators have missed the risks at Silicon Valley Bank
After all, the fact that SVB was sitting on a massive, unhedged portfolio of long-term Treasuries was no secret; last year, JPMorgan circulated shocking calculations to its clients (which were recirculated this week) that showed that these (then) unrealised losses could wipe out tier one capital.
