Opinion
Rolling the dice on risk catches up with Credit Suisse, SVB
The troubles at Credit Suisse and SVB have proved that smart bankers don’t play dangerous games.
Jonathan ShapiroSenior reporterThe seeds of the banking disaster that has toppled Silicon Valley Bank and threatens to engulf Swiss banking giant Credit Suisse were sown well before January 2022.
That’s when Thomas Peterffy, the founder and chief executive of Interactive Brokers, was asked by a Goldman Sachs analyst whether he could consider taking a little more duration, or interest rate risk, to juice some extra return from the pool of client cash he was holding.
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