The crash of SVB proves that DEI and ESG investing is not only ineffective but actually guarantees you will fail
Invest to make money. Not to forward some woke agenda that half of your clients don’t even agree with. In a real society, ESG investing rules and scorecards would be called what they really are. Corruption
Genuine question: What does SVB have to do with DEI and ESG?
Well to be fair SVB appartently had a bunch a woke shit going on. But I don't think it had anything to do with this. Unless the C-suite was so focused on it that they completely drove the free candy van off the cliff.
There is a LinkedIn bio of the CRO(Chief Risk Officer) floating around social media. This person states eveyrthing about DEI, LGBTQ+, etc, and nothing about risk in their title.
Time to withdraw out of my “woke” Treasury bills and mortgage-backed securities and start piling into 100% pure, Grade A, Saudi Aramco and ExxonMobil bonds.
Or just invest in things you think will grow in value rather than some phantom government score
SVB's failure has absolutely nothing to do with DEI or ESG... they mistimed interest rates and had to sell their investment portfolio bonds at a big loss + tried to issue equity to fund the shortfall. Shareholders sold out ahead of dilution, mass hysteria and bank run ensued.
Smooth-brain logic.
OP the type of guy to have an "adjusted" IQ of 200 when their GAAP IQ is only 50.
Lolol. You made my day sir. +SB
I am pretty smooth arent I 😎
Ah yes. The crash of FTX also proved that hamburgers are unhealthy
What about cheeseburgers? I think those are okay.
Uou need a balanced diet. Therefore cheeseburger is healthier than a burger. If you add fries with ketchup, even healthier than just a cheeseburger. 2 vegetables!
they're not kosher
Guarantee OP doesn’t have a girlfriend
Don't be rude, waifu pillows count
Guarantee OP gets tons of ass
How much time and money did they spend on ESG and similar concepts? My guess is not much compared to the lack of attention paid to hedging interest rate risk? Long term bonds were down close to 30% last year.
I think the lack of attention to risk is directly tied to the attention they spent of ESG
I abhor--utterly abhor--ESG and DEI initiatives. They make me want to puke. That said, they aren't responsible for the SVB crash. What we CAN say, however, is that the "G" (governance) part of ESG is absolute bullsh*t. FTX had an excellent governance rating. ESG analysis is just garbage analysis for investors.
Same boat here. I think their announced ESG initiatives was like $5mm over a few years, so pennies in comparison to their capital shortfall. Sounds like their UK arm CRO was incompetent and focused more on the ESG stuff than her job but again, this firm wasn't brought down by its UK operations, a small factor at best.
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