Can someone explain to me how a deposit taking bank that tripped its stock price over a very short period of time recently did not raise all sorts of flags and ring alarm bells at the Fed? Why are they literally ALWAYS behind the curve? In an era of automation should there not be multiple alerts sent out when stocks of the systemically most important institutions suddenly start trading like penny stocks or startups?
SVB collapse: Peter Thiel’s role scrutinized as spark of bank run https://www.washingtonexaminer.com/news/business/svb-collapse-peter-thiel-silicon-valley- Tech mogul and Republican campaign donor Peter Thiel is being accused of sparking the run on the bank that forced regulators to close down Silicon Valley Bank. Journalists and critics have turned their focus on Thiel in the wake of SVB's collapse, accusing him of influencing businesses to withdraw their funding from the bank. His efforts are thought to be the first that eventually sparked the bank run, leading to California regulators intervening. "To be clear, SVB did not properly hedge its risks against two threats, 1) concentration of influence by Peter Thiel, 2) rising interest rates," tweeted investigative journalist Dave Troy. "That was mismanagement, but it still wasn't fraud, and they still have sufficient assets to meet nearly all of the bank's obligations." "There should be more scrutiny of Peter Thiel and Bill Ackman for yelling fire in a crowded theater in this SVB collapse," tweeted CNBC host Sara Eisen. Others turned their focus to Thiel's promotion and subsequent profiting off of crypto investments after the market crashed as a reason to be suspicious of his withdrawals. "You mean the guy who was touting crypto and trashing critics while he was selling crypto? That guy? Shocker!" tweeted tech journalist Kara Swisher. Thiel's venture capital firm Founders Fund had pulled all of its funding from SVB as of Thursday morning, according to Bloomberg. The company also advised its portfolio companies to withdraw their money from the bank, saying there was no downside to moving their money out of the bank. The timing has led some to conclude that the investor's actions may have led to mass withdrawals. Founders Fund also hosted a capital call on Thursday, which venture capital firms do to ask investors to send them money to make investment startups. Founders Fund asked portfolio companies to begin moving funding to SVB. When Founders realized that technical problems were delaying the transfer, they implored investors to transfer money to other banks. SVB, which was the 16th largest federally insured bank, was closed by regulators in the state Friday after attempts to raise capital failed. The bank failure is one of the largest since 2008. The bank scared investors earlier in the week when it announced that it sold off treasuries at a loss, causing a run on the bank. SVB customers withdrew $42 billion a day after the bank began falling underwater. The company quickly responded by selling $21 billion in bonds. The Biden administration took measures on Monday to protect depositors at the bank. Thiel is a notable Republican donor, providing campaign funds to J.D. Vance in the Ohio Senate race and Blake Masters in the Arizona Senate race in the 2022 midterm elections.
%% THAT seems to be a persistent pattern slow go with some govs. But with that pattern in mind; not sure they will get to keep thier bank bonuses\ + stock sale profits. Time will tell. Took them more years than most would have figured \to bust Bunker+ Bro Hunts attempted silver corner. The big fundraiser for Campus Crusade for Christ [CRU]said [on silver corner]='' it was a game;i dont have a plan i just do the best i can'' He did much better in the oil + gas business...............................................
For starters googling Silicon Valley Bank would have found reputable research on the Internet with negative opinions on the co.
The blame game has started. Blaming everything from excessive transparency, to the management & BOD, to DEI, to regulations, to "hubris and greed". It's almost entertaining -- ignoring the billions lost. ‘Absolutely idiotic’. SVB insider says employees are angry with CEO https://www.cnn.com/2023/03/13/business/svb-employees-angry-at-ceo ‘Big Short’ investor Michael Burry blames SVB crisis on ‘hubris and greed’ https://nypost.com/2023/03/13/investor-michael-burry-blames-svb-crisis-on-hubris-and-greed/ Was Silicon Valley Bank demise caused by Trump easing regulation, 'woke' efforts, or something else? https://www.politifact.com/article/2023/mar/13/what-caused-silicon-valley-banks-downfall-rewritte/ Of course, the bank shut down it's social media channels as it went under so customers could not contact it and apparently to suppress discussion on its previous statements. Silicon Valley Bank quietly deleted its social media channels as it went under https://www.dailydot.com/debug/silicon-valley-bank-deletes-social-media/
%% [1] LOL\ not sure if that is sarcasm; but i dont live in CA or bank with an ESG bank. Warren buffet warned the EsG [BLK] = asinine , To me\ that BLK- EsG+ most all EsG looks asinine X 9.I did buy + profit form an BLK ETF, no problem\ even though some got ripped off with panic sellin'LOL [2]Actually i remember that bank from IBD charts /looked like good uptrend for a bank chart + mostly good on the fundaments + charts, years ago. Looks like most all these post have some sort of a clue. Sounds like a mixture of failure, even though i almost bought that bank off all ther iBD info some year ago, some+ many parts of it were above average, dont remember the volume. I [666.666]Heard one Christian business man, in the know , say to much concentration on tech; but maybe hard not to in silicon valley?? [777] One bank analyst noted bond trouble/rise in rates; but @ first glance a 10% loss on billions on bonds[gov bonds] is fairly close to 7-8% max loss IBD plans for. 888]But my dad was a banker so i maybe am too easy on them.Strange a regional CA bank =REAL STRANGE a CA big bank[ for a regional bank ]was in MA= sounds crooked like a political payoff, but cant prove that [999]IF true, waaaaaaaaaaaaaaaaay to much loans on wine, even if was ''premium wine''?? Sounds a bit laughable running to a bigger bank that is ''heavy'' in fines + SEC fines ; pretend would be more safe than a conservative community bank.[part disclosure did brief trade on XLF never got filled on FAS, going up to much LOL FAZ losing money today.
The Justice Dept. has opened an investigation into the collapse of Silicon Valley Bank, two people with knowledge of the matter said. Legal experts said a possible focus of the investigation could be insider sales by several bank executives in the weeks before the bank’s failure. Tuesday, March 14, 2023 11:50 AM ET https://www.nytimes.com/2023/03/14/business/silicon-valley-bank-investigation.html