Silicon Valley Bank woke and broke
Remember 2008 ? This week we saw the 2nd largest bank collapse in history. The repercussions are not yet realized . Silcon Valley Bank (SVB) has been shut down by regulators who cited both inadequate liquidity and insolvency. SIVB’s $209 billion in assets are roughly 2/3 of Washington Mutual which failed in 2008.
JC Morgan Chase sent me an email saying it can't happen here. They blamed it on a heavy reliance of investing in risky venture capital(VC) instead of traditional loans . That was all well and good when the Fed was giving away $$$$ with zero interest rates . As interest rates rose ;their loans to VCs became more vulnerable.
Quote:
"Silicon Valley Bank failed largely because of its links to the tech industry, because tech is getting nailed by all the rise in interest rates, and changes in consumer preferences," said Mark Zandi, chief economist for Moody's Analytics.
Silicon Valley Bank failure having worldwide repercussions - CBS News
The California Department of Financial Protection and Innovation shut it down mid-day shortly after it disclosed it had taken a $1.8 billion hit from a $21 billion fire sale of its bond holdings.
There is another factor to consider . Maybe it took it's eyes off the prize .
Banks have risk managers who's sole purpose is to evaluate the risks the banks are exposed to. They are supposed to prevent and manage potential risks that can impact the overall operations.
Jay Ersapah is the boss of Financial Risk Management at SVB’s UK branch. How did she do her job ? She managed Diversity Equity and Inclusion (DEI) programs at SVB.
Silicon Valley Bank (svb.com)
Jay Ersapah Head of Financial Risk Management & Model Risk Silicon Valley Bank UK Limited "The phrase 'you can't be what you can't see' resonates with me. As a queer person of color and a first generation immigrant from a working class background, there were not many role models for me to 'see' growing up. I feel privileged to co-chair the LGBTQ+ ERG and help spread awareness of lived queer experiences, partner with charitable organizations, and above all, create a sense of community for our LGBTQ+ employees and allies." - America’s best pics and videos (americasbestpics.com)
She was the bank's European LGBTQIA+++ XYZ Employee Resource Group co-chair
Silicon Valley Bank on LinkedIn: #outstanding #lgbtq #outrolemodels22 | 29 comments
Home Depot co-founder Bernie Marcus stated that woke policies like the ones launched by Ersapah could have led to the SVB’s failure.
'I feel bad for all the people who lost all their money in this wake up bank. You know, it was even sadder to hear that the bank executives sold their stock before this happened. This is disappointing to me. Who knows if the Justice Department will go after them? They’re a wake up company, so I don’t think so. And they’ll probably get away with it,”
Home Depot co-founder Torche 'woke up' to Silicon Valley Bank collapse, warning recession may already be here - Business News (crast.net)
"And these banks are badly run because everyone is focused on diversification and all the wake up issues and are not focused on one thing, which is shareholder return,”
This is not the first and it won't be the last DEI company that goes belly up . Our bigger problem is our governments have also succumbed to the woke agenda.