The board and senior management were all woke and focused on their ESG scores rather than investor returns and deposit safety.
nypost.com
Right. When you see the VC money drying up, how do you not anticipate those portfolio companies burning though cash? The other thing that really surprised me is that they had a huge ($3.3B) deposit from some BS stable coin. As we know from recent history, they can evaporate almost instantly, especially when bond prices drop suddenly. If they don't appreciate that risk to your deposits, what other stupid stuff were they doing?
“It’s not enough to just report the numbers, instead, we need to demand a deep look at company culture — what are the informal networks and behaviors that support the status quo,” Burr said. “Discuss this at the board level and hold management teams accountable for real change.”The board and senior management were all woke and focused on their ESG scores rather than investor returns and deposit safety.
Obama official, Hillary donors, improv actor: Meet SVB’s board of directors
Among the 12 directors who were supposed to oversee fallen Silicon Valley Bank — and prevent the catastrophic errors on Friday threw the entire banking system into jeopardy — there’s only one…
I think you mean FORMER investment committee, now appearing at the drive up window of MCD’s
Those are CNBC reporters.
Crypto Investing, HAS come to, BITE them,.. in the asszz !
The reason SVB went down was because of crackpot startups wasn't it?
My education is K thru 4. The treasure prints or coins it {money}. The banks borrow from the Federal Reserve Bank @ a interest rate. They loan money to business, manufactures, home loans, car loans etc @ a higher rate of interest.Some is saved and returned to bank from depositers {invested} by working people.
If the startup had a viable business model, path to revenue and profit and a quality proven management team they did not need SVB. They could get money at any bank or from prominent VC's. I spent most of my working life at software startups. Getting venture capital is a question of relationships and proven track records. Seen this too many times throughout the years.
That is not how it works. The banks loan your deposited money at a higher interest rate on the loan than they give you on your deposited money. That is the primary way they make money. They also invest your deposits in both long and short term instruments of various sorts. They go to the fed to borrow when they cannot make their reserve requirement for the day. The bottom line is that if you have a bank account, it is your money being loaned.
Right. No way they'll let it fold. Gonna get interesting.
sound familiar? does gov't deficit spending come to mind?
No, not exactly. SVB's deposits grew enormously in recent years. Venture Capital investment was booming. All that money flowed into startups and tech companies as cash for them to run their businesses. Many of those startups used SVB as a bank because SVB was more friendly to entrepreneurs than most banks, who won't give them the time of day. So far so good. SVB then invests money in treasury bonds among other things. The ideas is that you get a guaranteed rate of return on those investments by holding them to maturity. It's a very safe strategy when done properly.
I suggest YOU and others search Federal Reserve Board. There are 12 member banks in 12 districts across the country. It will tell you they loan money. They have started loan/ give money down to local communities.
