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In the sum, whenever ascending rates of interest endangered profits and you may reduced the worth of the bonds, SVBFG administration got steps to keep brief-label winnings rather than efficiently create the underlying equilibrium layer risks. SVBFG’s failure is going to be tied to the brand new failure of one’s panel from directors and you can elder government. The fresh panel and administration don’t effectively manage the dangers built-in inside SVBFG’s business design and you will balance piece steps. SVBFG don’t bring enough steps in a prompt trend to make an excellent governance and you can risk-government construction you to definitely leftover up with the fast development and you will business design threats.
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