Adrian Docherty

I suspect @British_Airways Executive Club Silver call centre is cheating. Stranded in Florence overnight due to fog and called for help to rebook via Pisa, got dumped 5 TIMES bc they “couldn’t hear me” when they got back from putting me on hold. calling this out as bs. +it hurts

But.. but… what if the reduced risk-sensitivity of the new standards means that the next crisis is actually exacerbated?

Please @RestIsPolitics pronounce PUTIN correctly as POOTIN not PYUTIN. As a Russian speaker, I shiver when I hear you on this word @campbellclaret ! Many thanks 🙏🏻

If this is how we put people in the House of Lords (cf. BoJo “honours list”), then we must abolish the House of Lords

Patten was excellent but he got the Lithuanian GDP wrong: in fact, UK GDP pc is 2x Lithuania’s

Fair Value accounting is a dangerous tool if it gets into the wrong hands. Assets should be carried at a value that reflects the stability of their funding. “Fire sale” values mostly aren’t relevant. (Huge issue though: can NMDs fund HTCs?)

Disappointed to keep reading misleading statements in the press such as this (“Basically, banks shouldn’t (and usually don’t) hedge the rate risk in “Hold To Maturity” bond portfolios because”…). They absolutely should, and usually do. ft.com/content/d23e71e0-b998…

“One idea is to stress-test what might happen to a bank’s safety cushion were its bond portfolios marked to market, and if rates rose further”. This is exactly what the IRRBB EVE stress test already does and, indeed, SVB disclosed its (awful) outcome

To be clear: banks can, do and must hedge interest rate risk so that they don’t suffer when rates change. That includes investment securities they intend to hold onto bis.org/bcbs/publ/d319.htm

Why were the lab leak theories shouted down? That seemed wrong to me

What a stunningly great leader in Estonia 🇪🇪 ! Still have fond giggly memories of nightclubs in Tallinn stopping the music for Mr Bean on TV (ok it was 1990)

Silicon Valley Bank’s exposure to rising interest rates was reported clearly in their 10-k published on 1 March 2022. For those unable to read accounting-speak, it says (roughly): “if rates rise a lot, we’re toast”. Yet, during 2022 they increased their exposure by closing hedges

Super important observation on bank fair value accounting. If you fair value the assets, maybe you need to fair value the funding too

Here we go again, but worse. I’d expect maybe an aggregate 6pp hit to CET1 ratios in this exercise. Banks will prove resilient (good risk mgmt, solid capital). This hypothetical level of stress would have flattened banks 15 years ago.