- SVB was a “hedge fund in drag,” taking risky bets at a poor time, Chris Whalen said.
- But other banks shouldn’t be blamed for losses in their bond portfolios, he told CNBC.
- Instead, the losses are the Fed’s responsibility after it hiked rates aggressively, he added.
Banks shouldn’t be blamed for the losses in their bond holdings — but Silicon Valley Bank’s failure was self-made, according to Chris Whalen, chairman of Whalen Global Advisors.
In a Thursday interview with CNBC, he instead blamed the Federal Reserve for keeping rates low with massive bond purchases, then suddenly raising rates sharply.
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