Friday, March 10th, 2023 we saw the second largest bank failure in US history. The trouble started on Thursday the 9th when their stock prices fell and people began pulling their money out of SVB. By Friday morning, it had turned into total apocalypse with people being turned away from branches, police were called to the branch in New York, and by the middle of the day the FDIC stepped in, took ownership, and will reopen it under a new name on Monday morning.
Let’s look at what happened that many of us did not realize prior to March 10th.
In November 2012, Silicon Valley Bank (SVP) announced a 50-50 joint venture with Shanghai Pudong Development Bank (SPDB) to provide capital to start-up technology entrepreneurs. In July 2015, the joint venture was approved by the China Bank Regulatory Commission (CBRC) to operate in renminbi (RMB), the official currency of the People’s Republic of China. This license allows the joint venture to provide banking products and services to its clients in local Chinese currency.
In 2019:
The link below was where this information came from on Friday March 10th. I added the link because by March 11th, this link had been wiped, and that information is no longer available. Click the link for yourself. What was screenshot the night before was wiped in less than 24 hours.
Soooo…..we know some history of some of the not so great foreign deals that SVB was involved with. Moving on to the current disaster.
First, it should be noted that the CEO of Silicon Valley Bank, is also a class A director at Federal Reserve in San Francisco. Well, he WAS. He was removed from that position on March 10th when his bank went underwater. He is no longer the CEO of defunct SVB either. Another point of interest is that the Chief Administrative Officer of SVB was Joseph Gentile, who was formerly the CFO of the now defunct Lehman Brothers until 2007. He joined SVB in 2008. Was that a smart hire? Probably not.
...
Also starting in February, the CEO, CFO, and legal team at SVB started selling their stock off. A LOT of their stock.
BREAKING: Before the collapse of Silicon Valley Bank, executives sold a lot of their shares.
— unusual_whales (@unusual_whales) March 11, 2023
Gregory Becker, CEO, sold 11% on Feb 27, 2023.
Michael Zucker, General Counsel, 19% on Feb 5.
Daniel Beck, CFO, sold 32% on Feb 27.
Michelle Draper, CMO, sold 25% on Feb 1.
Unusual. pic.twitter.com/SFMmpG5dhm
The CEO sold SO much stock that it actually triggered an SEC investigation into the stock sales.
Other points of interest: over 1500 companies that are pro climate change had their money parked at SVB. They were very “woke”. They had a fantastic diversity and equity inclusion program at SVB. Does the term “go woke go broke” apply here? Yup.
Other companies affected by this include ROKU, who had over $480 million dollars with SVB. Rumor also states that Harry and Meghan, as in the royalty Harry, had millions parked at SVB at the “advice of their Silicon Valley friends”, including his book and tour royalties...
Unbelievable.
AND THEN THERE'S THIS:
Biden Lies By Omission – Forgets to Tell Americans that We Are Bailing Out China’s Venture Capital Business with Silicon Valley Bank Rescue
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