by BoatSurfer600
(Bloomberg) — Billionaire Andre Esteves, the co-founder and chairman of Brazil’s Banco BTG Pactual SA, said that “any junior analyst” from Latin America would have known how to manage the interest rate risk on Silicon Valley Bank’s balance sheet to avoid its collapse.
Esteves, speaking at a BTG event in Santiago, Chile, said the volatility roiling global markets is a result of 15 years of complacency during near-zero interest rates that led to widespread excesses. People were caught off guard when rates suddenly spiked and didn’t have the real life experience on how to manage those risks, he said.
“It’s very basic asset liability management that any junior analyst working at a bank in Chile, Brazil or Colombia or any other country that presents a little more volatility would know,” Esteves said. “It was a gross mismanagement of your interest rates mismatch and any intern at BTG or Bank of Chile or any other great Chilean bank learned in the first three months of job that you shouldn’t do that — but apparently they didn’t learn.”
finance.yahoo.com/news/brazilian-billionaire-says-intern-seen-150253380.html