Sen. Kennedy says SVB bailout could have been avoided: ‘Bone deep, down-to-the-marrow stupid’
Fox News
Sen. John Kennedy said Wednesday that the bailout of SVB in California could have been avoided if the bank were paying attention and regulators acted.
"If the management of Silicon Valley Bank had known the difference between a banking textbook and an L.L. Bean catalog, Silicon Valley Bank would have never bought securities that are so sensitive to interest rates without hedging that risk. Honestly, it’s banking 101," Kennedy said. Pete Kasperowicz is a politics editor at Fox News Digital.
The senator said all that was needed was an effort by the bank to hedge the growing risk it faced from owning securities that were sensitive to rising interest rates, and it could have avoided the sudden need to sell these securities that tumbled as interest rates soared higher over the last year.