First off I want to say that I love remote work and it is great for MY work life balance. BUT I think it is part of the reason why SVB failed. SVB experienced massive growth out of COVID as money flooded in for tech. So they were flush with cash that they needed to manage so they had to hire as they were growing. Hiring during COVID meant hiring remote workers. If you look at LinkedIn, all of their traders, PMs, and risk are all throughout America. All of them have about 1 year of experience at SVB including their Chief Risk Officer and treasurer. Their asset liability management was completely screwed up to the point that someone had to know it was screwed up. They had long duration assets against short term liabilities in the face of rising rates. Or if they knew better they could've avoided MBS in the face of rising rates. It doesn't seem like they understood negative convexity and how rising rates extends your duration in MBS. Had they been working in the office right next to each other someone would've said, hey - should we like you know sell some of these long term assets? Should we get some swaps/swaptions/caps going here just in case? But they were all over, god knows how often they were talking or even working. JP Morgan and Goldman are in office...I'd rather they be my banker than SVB employees that are just calling in. I think if the team had been working together pre-COVID in the office and then went remote, things would have fared better. Working remotely it is hard to train and communicate within finance where seconds matter and there needs to be more collaboration and discussion around what to do. This is easier done when you are in the same room hashing out ideas. Again, I love remote but for my own selfish reasons. If I was putting my money in the hands of others..I don't want them phoning it in.
Tldr?
OP is high
You are so hilariously wrong it’s not even worth a discussion
Total nonsense. Don’t wanna argue with ignorant kids here.
Use me as a downvote button
Should have hired remote folks that knew what they were doing and spared the internet from reading this
love how tech workers make everything themselves and not macroeconomics
My thoughts too and I didn't even read the whole post.
You'll grow up to be a boomer
🤣 Also harry is crybaby with golden spoon.
You may want to limber up before doing stretches like this in future
🫡
Best possible reply here, congratulations.