With minimal research, it’s not surprising that signs of failure of the Silicon Valley Bank failure were present.
The Silicon Valley Bank was formed in 1983 by two former managers of Bank of America. Based in Santa Clara, Calif.,it grew as the Northern California “tech-based” industry and commercial business world grew.
It grew to be 16th in the country for deposits.
But, what goes up will come down, it’s said. I lived through the 2008 banking scandal. Many of the big banks received bailouts from the government under the assumption that they can’t fail. I do remember losing a home because poor public relations in the same banking industry, with a refinance, screwed us like so many others. But at least we didn’t lose all our retirement investments like millions of others did with the 401K crash. Tech also took its first big hit in 2008.
Last year, tech stocks fell 30% compared to 20% overall. The writing was on the wall. Of course, the CEO and CFO saw it and dumped stock early. An ongoing investigation alleges a lot of those in the know did the same. I guess it comes down to being responsible. If you had millions or more in one basket, would you keep an eye on that basket?
Thank God it’s not an issue for all banking. Pray to God an end to high interest rates, inflation and threat of recession is challenged. I believe expanding the working public, spending your earnings and lowering handouts are major factors for any kind of hope. Is it any wonder they grew the IRS at a time like this? Police the depositors, not the wasteful spending? Perfect!