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Happier Days at SVB / File Photo from WSJ

edited March 2023 in Other Investing
”A party at Silicone Valley Bank in 2015”

image
Article: ”We Never Thought A Bank So Successful Could Collapse This Fast”

Photo / Article appeared in the March 18, 2023 edition of The Wall Street Journal

Photo Caption - “A Party At Silicone Valley Bank in 2015”

Comments

  • edited March 2023
    The bank officers certainly knew. Here's the head and subhead of an NYT article in today's edition. SVB was under Fed scrutiny, apparently just not very effective scrutiny:
    Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems

    The bank was using an incorrect model as it assessed its own risks amid rising interest rates, and spent much of 2022 under a supervisory review.
  • The 2018 rollback of the part of Dobb-Frank Act on regulatory examination and stress test contributed to this failure. This supposed to US banks more competitive with other banks in the world. Now we realize that is a mistake. Will any of the executives go to jail? Will any of their bonus being claw back?
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