Post #1416 by Jimkredux on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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It was SVB's fault for not reducing their bond duration as the fed was raising rates. There was no doubt that the FED was in a tightening cycle, and replacing 10% of their long duration bonds with each raise and replacing them with 3 month bills would have closed the gap in their balance sheet well enough that they would still exist. Their vulnerability to a run was exploited because their risk management did not show up to work.

Jk

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