The fall of Silicon Valley Bank (SVB)
The fall of Silicon Valley Bank (SVB)
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.
What else do we know about SVB?
Well, Jim Kramer on CNBC had them listed as of a MONTH AGO as one of the “top 10 S&P investments” to park your money with. Click on the Bitchute link from the below twitter link to see the news segment last month.
Also starting in February, the CEO, CFO, and legal team at SVB started selling their stock off. A LOT of their stock.
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. Oops.
This link details how this week went down.
C-Suite sells off stocks. They were already in trouble back in 2019 when deposits far outweighed their loan portfolio. They invested heavily in mortgages and securities and did not diversity well. Moody’s warned them they were going to “downgrade” their credit rating this week, due to their heavy investments that were now affected by inflation and increased interest rates. This led to SVB contacting Goldman Sachs about a way to sell off their stocks and re-invest their assets to keep SVB afloat. They failed to anticipate that Venture Capitalists advised their customers to get out of SVB and they would make a run on the bank and pull out their money and investments, and sell their stocks as well. SVB had a tentative deal with General Atlantic to buy off their stock but the deal did not go through fast enough. SVB did not get the proper documents in place and created a 24 hour delay which led to the stocks tumbling on Thursday, and the inevitable happened on Friday.
In Friday post trading there were massive stock pull-outs from many other banks, including the big 4 banks (Wells Fargo, BOA, JP Morgan, etc). Monday might be a blood bath in the stock market. Our current inflation pace cannot sustain and continue, and the bottom will fall out. When and how badly remains to be seen.
The large banks/FED/Bank of International Settlements/ Rothchild Empire are an organized crime syndicate. Unfortunately, even the middle and small banks are dependent on the mafiosos. We had a chance in 2008 to let the syndicate implode but Bush and Obama submitted to the empire. Grab your loved ones and be prepared to eat a lot of canned beans.
I usually don't get my daily schadenfreude dopamine hit from a Jennifer Brown Substack piece but today was different! Thanks! Loved it, especially the links! Harry and Meghan's use of SVB was particularly juicy.