#bank management

[fnord888]

Patrick McKenzie writes about his (positive) experiences with a First Republic personal line of credit and his conclusion is

It has been quite popular for various parties to point the fingers at bank management teams, saying that impressively impecunious operation of the core business of banking is the proximate cause for the crisis. The crisis is caused by the pace of change in interest rates. Everything else is commentary.

Whereas my takeaway from that story is almost the exact opposite.

The positive aspects of the story are all about, like, having underwriting flexible enough to deal with his weird situation. So while it now doubt helped that the credit line has a seven* year fixed (low) rate, that's not really the core (or socially valuable) selling point of the service. But of course it's interest rates that killed First Republic.

McKenzie goes on at some length about their very low default rate for those products**, despite taking on people in weird situations like his. But that's the whole problem: banks were pricing in credit risk but not interest rate risk.

Maybe it wouldn't have mattered. The size of line of credit portfolio is dwarfed by the mortgage portfolio, and that's a business where it's much harder to deal with interest rate risk while remaining competitive.

But the story here still seems to me to be a story of bank management essentially not caring about interest rate risk.

*Really nine years, because there's a two year "draw period" before the payback period even begins.

**Although, as an aside, those rates were for a loan targeted at "young professionals" during the tech boom. Credit risk may have risen in the new era of tech layoffs.

[rottengurlz]

she’s like if the virgin mary smoked a pack of pall malls every day 🚬

[notnights]

Youtube automatically age-restricted this. og

[lilllybones]

some lads...

[fanfiction-obsession]

Major Monogram from Phineas and Ferb is a fascinating accidental example of unjust biases stemming from ignorance and laziness instead of intentional harm in the ‘species-ism’ that is a root of injustice in the PnF universe. In this essay I will

[bmpmp3]

based off this video. i think teto is a union man

[icewindandboringhorror]

HAPPY 16TH BIRTHDAY!!! To this elderly bapy boye!!! he...!!!

[songjay-ay]

im about to slutshame him

[notbecauseofvictories]

It's heartening sometimes to realize how incredibly ordinary historical figures looked. If you watch a bunch of period dramas, you come away thinking that history was made exclusively by shockingly attractive people---when actually, famous poets with burnished names look more like Jim, The Local Bank Manager; artists who broke the mold wouldn't look out of place scrolling through their phone on the subway. You could walk past the absurdly wealthy doyennes of society in the grocery store and never give them a second glance.

[insanityclause]

View this post on Instagram

A post shared by Hayley Squires (@hayzsquires)

[strawbebbiesart]

june/ july / august 💌🥪🦢

[relaxedstyles]

[annabelle--cane]

people like to give callum brodie to jon and martin as an adopted son, which is valid and fun, but oliver and annabelle also have very ambiguous fates so I like to imagine them as britain's worst found family. famously good liar annabelle dragging famously bad liar oliver into a parent-teacher conference where they pretend to be married so they can talk to a school principal about why their "son" keeps meddling with building's fuse box whenever he's stressed.

[nessa007]

it’s funny seeing the alleged drama between two certain outer banks cast members who refused to film scenes together in the recent season, meanwhile back in the day you had stana katic and nathan fillion, who apparently loathed each other irl, still having insane chemistry while playing an onscreen couple on castle and chad michael murray and sophia bush were going through a literal divorce irl while playing an onscreen couple going through a tough breakup on one tree hill

these actors showed up and did their job and did it well

[rafesbbyy]

I genuinely love all and every Rafe fic I read and I swear everyone in this fandom is so freaking talented, but sometimes I wish there were Rafe fics that were more show accurate. I wanna read fics that have canon show events and characterization and stuff—I love reading the ones where Cameron family is depicted as close and happy but we all know in canon, they're anything but. The canon to me is also just so much more interesting and I just wanna explore those dynamics and obx fandom writers are so goddamn skilled.

[acekindaneat]

some wawa art from twt :]