I think remote working has contributed to lower productivity wherever it has been tried. Himans are very poor about keeping their promises to work harder tomorrow to make up for the laziness today.
I think remote working has contributed to lower productivity wherever it has been tried. Humans are very poor about keeping their promises to work harder tomorrow to make up for the laziness today.
So remote work caused them to overinvest in Treasury Notes?
But this is what happens when the ladies decide that celebrating birthdays and having baby showers at work are more important than ACTUAL WORK.
Remote work didn’t cause them to dump resources and personnel into ESG and DEI while leaving their risk assessment department leaderless and on just a skeleton crew.
Blaming the SVB failure on remote work is like blaming a flat tire for not being able to drive your car when you burned holes in half the pistons and then wonder why the engine seized. The seized engine isn’t why the car won’t go anywhere, it’s gotta be the flat tire - according to these idiots.
I don’t see how remote work caused a bank failure, in any form, here.
I go in to work only occasionally, now, and it’s team-building exercises and a lot of online meetings.
Staying home and working just makes sense.
P.P.M. contributed the collapse.
Piss
Poor
Management
Simplicity isn’t hard to understand.
Because they couldn’t count their FTX coins in person?
I’m thinking that corporate real estate is in trouble because workers at many companies all across the country are happily working from home. This is bad for any Money Men who have ownership of corporate real estate.
Never let a crisis go to waste — SVB failed? Because they made bad investments? And were not paying attention to basic risk management? Well, why not use this crisis and tell everyone that it was REALLY because people were working from home! A lesson for all companies! Force your workers back to the office! It won’t help SVB, but sure would help Money Men who own corporate real estate!
Blame it on remote work, whatever. The way I see it there is mainly one person to blame - Biden.
Blame it on remote work, whatever. The way I see it there is mainly one person to blame - Biden.
wrongo
the bank’s bond portfolio had huge unrealized losses that,
eventually, could not be covered
A very odd thing to say.
Did it result in less due diligence? Sloppy work?
Not saying that WFH is always good, in many ways it is not, but I am suspicious on all the “WOW! Commuting is SO GREAT!” stuff in the media.
I’ve worked for banks for years and years and currently work for a bank.
No, its not about remote work. They had nobody in charge of Risk Management for almost a year and simply DID NOT HEDGE against interest rate risk even at a time of rising interest rates. This was just basic incompetence.
There no other way to put it. Even a kid straight out of college should’ve known to hedge.
Somehow they didn’t fail their CCAR stress test which is absolutely impossible. So some regulators were clearly asleep at the wheel too.
They said this in a Zoom meeting, right?
Well, they may be right. Perhaps all that ‘remote’ time gave the employees time to RATIONALIZE giving money to people who could never pay it back.
Could it have been that SVB board of directors only had one member who had any experience in banking, while the rest were Obama and Clinton hacks.
Trying to effectively manage a remote workforce overnight with no real planning and testing is just as bad as switching from ICE to EV for political reasons.
blaming middle management for failures in an overnight transition is convenient, but might be overlooking other factors.
When I worked at a bank we operated based on “Gap Management” to balance out interest rate risk. Fixed rate assets were funded by fixed rate liabilities and variable rate assets were funded by variable rate liabilities. If there were mismatches they were hedged.
I've never worked in a bank so I can't attest to whether or not remote work did it.
Remote workers at a bank has got to be an IT security nightmare.