This is 🔥They sure did but that wasn't the problem.
As friggin Ray pointed out, HP Morgan only has 2 investment bankers.
Inflation is good for banks. It's when the fed steps in to correct that the problem starts.
Banks take in money from depositors and then lend and invest it. But the rate you and me get is not what they charge the idiot with a 550 credit score for a loan and certainly not the return they get from the things they invest in. All s bank has to do is get a little Vegas with loans or investment to get in trouble.
This was a bank in silicon valley in California. It's all highly educated tech hippies.
If I wanted California tech hippies to invest in my bank, I'd put minorities and alphabet community folks on my board and big colorful advertising of all the diversive and inclusive things my bank does for the community. Is it because I believe in any of that? Absolutely not, it's because the community is a majority of people who love that horseshit and I want their money.
Sweet Aunt Sally do you have this as a macro or something
You do see that. All the time. What happens normally is not a damn thing.
Every single one of the board members was rich and every single one of them was heavily invested in the bank. Take the name of anyone on that list and Google the their name plus insider trading and it will tell you how heavily invested they were in sub by share and dollar value.
They went bust by for the same reason all banks go bust, making risky investments designed to make their investors, in this case themselves as much money as possible. Did they make some mistakes? Clearly. But these banks do that all the time, and don't get caught because they cover. What caused the run was the depositors all wanted out at once and when that happens, any bank in high risk investments goes bust.
I'm perfectly willing to dump the blame on woke bullshit but this ain't the cause in this one case.