Shortly after VJ Day, my dad received the letter below from his buddy Harry Truax.  My dad kept the letter for the rest of his life, and I’ve kept it to this day.  The letter reads as follows (apologies for any transcription errors): Kassel, Germany – August 26, 1945 Dear Frank, I just received your…

I discussed the Federal Reserve’s supervision of liquidity risk at Silicon Valley Bank in an earlier post.  Examiners at least identified liquidity weaknesses at SVB, but supervisors were slow to translate findings into action or to even adjust ratings.  Supervision of interest rate risk was a more complete miss. Interest rate risk (IRR) represents a…