At a time when the bank was flush with cash, there was no CRO for a significant part of 2022, the ALM committee and Board committees failed to spot€¦

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At a time when the bank was flush with cash, there was no CRO for a significant part of 2022, the ALM committee and Board committees failed to spot the issues with changes to the banks risk models and there may have been no independent oversight of ALM decisions.

‘In an apparent bet that interest rates would go down last fall, SVB sold for a profit the financial instruments it used to hedge against the risk of higher rates’

This story maybe one that sits along side Enron as the dust settles, and there is reflection on what happened, and why the ‘red flares’ were not heeded to. What is concerning is that this was not a complex issue to address, yet led to such a catastrophic outcome.

It maybe yet another event where Whistleblowers play a key role in progressing the outcome. €œThey thought they could never go wrong,€ said a former bank official

Ted Dziekanowski Stephen Pitt-Walker, JD, FGIA

#riskmanagement #creditriskmanagement

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