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As a bank, parking the money into long maturity bonds, especially when it's not your money, and your customer can take the money back anytime, and the current rates are 0% (so can go upward only...).

Sounds like an insane investment decision.

My pessimistic view is that bonuses were paid out on invested cash not on cash just sitting there. So they had to buy something to get a fat bonus.

Shocking portfolio design isn’t regulated given how much of banking is regulated.

They were probably chasing higher yields in a low yield environment.