Many of us held our breath in astonishment at the collapse of Silicon Valley Bank (SVB), wondering how the banking managers could make such rookie mistakes as buying long term bond investments as the Fed raised interest rates. Or not recognizing the danger of having too many risky start up tech and venture capitalist depositors instead of a more diverse base of customers. The bank operated without a risk management officer for eight months in 2022. The FDIC and Fed had to swoop in and guarantee the depositors would be made whole above and beyond the $250,000 FDIC limit. The bank’s CEO, Greg Becker, sold 3.6 million in SVB stock two weeks before the FDIC took control of the bank. The ongoing investigation shows that multiple warnings from the FDIC were heard, but not heeded.
J.P. Morgan Chase Gets Schooled
J.P. Morgan Chase Gets Schooled
J.P. Morgan Chase Gets Schooled
Many of us held our breath in astonishment at the collapse of Silicon Valley Bank (SVB), wondering how the banking managers could make such rookie mistakes as buying long term bond investments as the Fed raised interest rates. Or not recognizing the danger of having too many risky start up tech and venture capitalist depositors instead of a more diverse base of customers. The bank operated without a risk management officer for eight months in 2022. The FDIC and Fed had to swoop in and guarantee the depositors would be made whole above and beyond the $250,000 FDIC limit. The bank’s CEO, Greg Becker, sold 3.6 million in SVB stock two weeks before the FDIC took control of the bank. The ongoing investigation shows that multiple warnings from the FDIC were heard, but not heeded.