Once upon a time, there were these nerm bonds that nobody really cared about until interest rates decided to do a little dance and rise, causing the value of these bonds to drop faster than a hot potato.

Now, the big shots at the Fed knew there were some problems brewing at one particular bank and they even tried to intervene, because let’s face it, nobody wants a bank to go belly-up. Unfortunately, they just couldn’t save the poor thing in time.

So, now the bigwigs at the Fed are scratching their heads and wondering what the heck went down. Was it the fault of the Federal Reserve Bank of San Francisco or maybe the bigwigs at the Federal Reserve Board? Or perhaps the Fed’s culture and approach to supervision was just a bit rubbish. Or maybe, just maybe, the existing rules were just as useless as an ashtray on a motorbike.

We’re all waiting with bated breath to see what this report will hold. It’s like waiting for your exam results when you know for a fact you spent more time watching Netflix than studying. Steven Kelly from the Yale Program on Financial Stability reckons there won’t be any finger-pointing, although deep down we all know someone’s head should roll.

So, grab yourself some popcorn, folks, and let’s see what this report holds. Will justice be served or will it be another case of “nothing to see here folks, move along”? Only time will tell.

Serious News: nytimes