This led to the unusual securities-related loans dominating Silicon Valley’s portfolio, said Bill Moreland, chief executive of BankRegData, a provider of bank regulatory statistics and analysis.
The loans are almost certainly a part of what Silicon Valley called its “Global Fund Banking” portfolio. According to the bank’s year-end financial statements, some 56% of its total loans fell into this bucket. Included were loans the bank made to private equity and venture capital firms to be repaid by investors in their funds when the firms request more capital from them.
Since Silicon Valley Bank’s assets and deposits peaked in 2022, tech and startup valuations have fallen significantly; even well-financed mature technology companies are laying off thousands in staff as their fortunes flag. This scenario suggests problems with the bank’s venture debt business. Facing the flood of withdrawals from depositors brought another flaw in the bank’s operation to light, Moreland said. Silicon Valley Bank had an uncommonly small cash cushion — only $12 billion, or just 5% of its assets, regulatory filings show. Last Thursday alone, the bank fielded redemptions of more than $40 billion from depositors, California banking authorities said.
Look who sits on the SVB board. Obama/Biden leadership. Then you have all the campaign contributions from SVB to democrats (ChuckSchumer trying to give back 🤣) 🦨
Hello out there! This the USA where we have free speech and the technologies that allow us to communicate quickly! This isn't the 60s with rotary dial phones and newspapers!
Lending large amounts of money to stock market gamblers, but yeah, Right wing media blames women & people of color.
Fake news