[tomder55]

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.

"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.

[jlisenbe]

the bank executives sold their stock before this happened.

Outrageous. Let's see if the Biden admin does anything about this.

Our bigger problem is our governments have also succumbed to the woke agenda.

Reminds me of a saying I used to hear. "The main thing is to keep the main thing the main thing."

[tomder55]

the bank executives sold their stock before this happened.


Outrageous. Let's see if the Biden admin does anything about this.

SVB CEO Greg Becker sold $3.6 million in share 2 weeks ago . To do this he converted options into stocks before selling them off. Had he waited his net gain would've been zippo . Could be just tremendous good luck timing in the Evita cattle future model .</sarc>

This was all part of a pre-arranged trading plan for the execs . The sale of 12,451 shares on Feb. 27 .He filed the plan that allowed him to sell the shares on Jan. 26. So he knew for more than a month that the bank was in serious trouble .

There is nothing illegal in the plan (10b5-1 plans) .Ironically they were created in 2000 to prevent insider trading .
Rule 10b5-1 Definition, How It Works, SEC Requirements (investopedia.com)

Clearly there are some major unintended loop holes. (typical of the 4th branch of government)

Now get this . The SEC knew this was a weakness so they revised the rules to have a 90 day cooling off period . The problem is that the new rule is not going to go into effect until April .

[tomder55]

Another sleep at the wheel group was the San Fran regional Fed . SVB was cashing in bonds at a $1.8 billion loss . Their portfolio had 35% of it's value in crpto- currency.

Why didn't the San Fran Fed see this coming ? Were they asleep at the wheel ? Or maybe it was because the CEO of SVB , Greg Becker who took the money and ran, was also on the board of directors at the Fed Reserve of San Fran.?????

[tomder55]

HSBC purchased the Brit branch of SVB for $1 ......that's right 1 dollar .

No one offered it to me . I would've doubled that and purchased it for 2 dollars . Then I would've immediately liquidated it and personally fired Jay Ersapah.

[tomder55]

The bank crisis has gone international .

Swiss authorities said that the problems of “certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets.”

If that is so then why is Credit Suisse tanking ?The crash spilled over into other European banking shares, with French and German banks such as BNP Paribas, Societe Generale, Commerzbank and Deutsche Bank falling . Italian and UK banks also slumped.

Seems that the banking system had risk managers that clearly had other agendas besides their fiduciary responsibilities

[jlisenbe]

But at least they are getting the pronouns right. That and CRT are, after all, the main things.

There are enormous risks involved in imagining that unimportant things are really important. It causes us to ignore what is critical. This is what we've done. Men running in women's races, using windmills, and killing unborn babies have become the priorities.

[tomder55]

Cal Guv Gavin Newsom financed 3 of his wineries through SVB and has personal accounts in the bank . His wife Jennifer Siebel also received a $100,000 donation from SVB in 2011 .

So when the $hit hit the fan ; it was no surprise that Newsom lobbied the White House to bail out SVB. Traditionally Federal Deposit Insurance Corp (FDIC) covers depositors up to $250,000 . Clueless Joe waived that for the current crisis and said all depositors will be covered .

Cheering Silicon Valley Bank Bailout, Gavin Newsom Doesn’t Mention He’s a Client (theintercept.com)

Failed California Bank Was Major Donor, Supporter To Newsom Family Nonprofit | The Daily Caller

Newsom did a Snoopy dance after the decision.

Over the last 48 hours, I have been in touch with the highest levels of leadership at the White House and Treasury. Everyone is working with FDIC to stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy

Governor Newsom Issues Statement on Silicon Valley Bank | California Governor


The Newsom's are part of the larger Pelosi crime family
Are California Gov. Gavin Newsom and House Speaker Nancy Pelosi related? We explain the family connection - ABC7 San Francisco (abc7news.com)

[tomder55]

SVB gave $70,650,000 to BLM groups .

BLM Funding Database - The American Way of Life (claremont.org)


Naturally, this makes one wonder why an organization like SVB, which is supposed to mitigate risk, would be willing to dump so much cash into an obvious grift machine. It wasn't as if it were difficult to see that the Black Lives Matter Global Foundation was nothing more than a sham; surely there were other nonprofits worthy of the bank's resources?
Perhaps SVB was more concerned with looking good for the public than they were with actually helping Black folks. If their hearts were in the right place, they would have sought out organizations who truly want to make a difference, instead of just clout, clicks, and cash.
And if they were this shallow on issues of racial justice, it's not a stretch to think they might have been so on risk management, too.

SVB Gave $74 Million to Black Lives Matter. It Explains a Lot About the Bank's Collapse | Opinion (newsweek.com)

[jlisenbe]

SVB gave $70,650,000 to BLM groups .

They kiss up to them like lapdogs. It's really incredible where their political persuasions have taken them.