BraveSentence6796

If they were aware of a huge MTM losses in their books, would hedging still make an impact or was it really too late for them? The tone of Fed never changed in terms of further interest rate hikes. I wonder why they kept their exposure naked. Would you say this is purely a case of huge risk poor risk management?

Thanks for the insight @inefficientmarkets. I was just wondering if in cases like this where you see a potential actualised loss if there would have been a “stop loss” action if there’s such a thing. Surely there must be someone running a stress test. I thought after the 2008 crash, banks would have been more prudent with the risks they are taking.