Voices from inside the bankrupt Silicon Valley Bank ``The CEO is too stupid'', ``Bonus payment a few hours before bankruptcy'' and ``Investing in cutting-edge technology but internal technology is the worst'' is clearly
CNN reports, 'A Silicon Valley Bank employee is angry with the bank's CEO, Greg Becker.'
'Absolutely idiotic'. SVB insider says employees are angry with CEO | CNN Business
https://edition.cnn.com/2023/03/13/business/svb-employees-angry-at-ceo/index.html
An employee of Silicon Valley Bank, who anonymously provided information to CNN, criticized Becker for publicly admitting that he had financial problems before the bank sought financial support. Becker's rash remarks 'lead to a bank run on customers,' said an unnamed employee who said he works in the wealth management division of Silicon Valley Bank. In addition, Becker's remarks admitting too frank financial deterioration leading to a bank run were ``completely ridiculous'' and ``You can say that Becker was very transparent.However, this can be seen in scandals. is the exact opposite,' he criticized.
CEO Becker's careless remarks refer to a series of announcements regarding the financial results for the first quarter of 2023 announced on Wednesday, March 8, 2023. In the financial results announcement, CEO Becker announced that he would 'sell virtually all securities' and 'raise funds of $ 2.25 billion (about 300 billion yen)' (PDF file). .
After the above announcement, Silicon Valley Bank's stock price plummeted by 60%.
Another employee said, 'Employees are just shocked at how stupid the CEO is.' CNN has requested comments from Silicon Valley Bank, but it seems that there was no response.
Bloomberg reports that CEO Becker sent a video message to employees saying that the 48 hours from the announcement of financial results on March 8 to bankruptcy were 'incredibly difficult.' According to reports, CEO Becker said in the video message, 'It's very heartbreaking to be here to deliver this message.' I can't imagine if you're worried.' 'Let's somehow stay on our feet and work hard to support our customers while supporting each other.' 'Thank you, my heart is with you.' It is reported that he apologized to the bank staff for falling into.
SVB CEO Becker addresses employees with 'heavy heart' in video | Reuters
https://www.reuters.com/markets/us/global-markets-banks-video-urgent-2023-03-11/
On the other hand, CNBC reports that 'Silicon Valley Bank employees received bonuses just before bankruptcy.'
Silicon Valley Bank employees received bonuses hours before takeover
https://www.cnbc.com/2023/03/11/silicon-valley-bank-employees-received-bonuses-hours-before-takeover.html
According to sources, the employees of Silicon Valley Bank were receiving bonuses hours before they went bankrupt on March 10 and were seized by the Federal Deposit Insurance Corporation (FDIC). The bonus payment processing was paid for the performance of the bank's employees in 2022 and was processed days before the bankruptcy, sources said. In other words, it seems that it was just a coincidence that the bonus payment was made several hours before the bankruptcy.
In addition, CNBC picks up the critic's point that 'Silicon Valley banks have long been slow to integrate technology.'
SVB's tech failings preceded the historic bank run, critics say
https://www.cnbc.com/2023/03/12/former-svb-employee-offers-insight-into-the-banks-failings.html
The bankruptcy of Silicon Valley Bank is said to be caused by the financial side of the bank. But one longtime customer of Silicon Valley Bank and a former manager who knows how the bank operates, said, 'Silicon Valley Bank wasn't doing anything good in the first place.' Specifically, Silicon Valley Bank has refused to adopt technology to meet the demands of modern business.
A former manager of Silicon Valley Bank, who declined to be named, said the technology within the bank remained stagnant despite the bank's investments in startups developing cutting-edge software and products. ``It's like the back end of the bank was all built with bubblegum and wire,'' he criticizes.
A startup CEO who said he had deposits with Silicon Valley Bank also said the bank's user experience was often clumsy and sometimes took a long time to fulfill requests.
According to David Selinger, CEO of security company Deep Sentinel, when the government launched the Paycheck Protection Program (PPP) as one of the measures to support the pandemic of the new coronavirus, Silicon Valley Bank had a procedure to receive PPP support. It failed completely.' In addition, CEO Selinger seems to have tried to receive PPP payment using various automated services provided by Silicon Valley Bank, but all failed, and in the end it seems that all the procedures had to be done manually. .
In addition, BurnRate CEO Robert McLaw said on Twitter, ``I have been a customer of Silicon Valley Bank for the past five years and I think they are terrible banks and deserve bankruptcy. One iota wasn't working, Silicon Valley Bank's pricing is punitive and you'd never see them unless you're a Silicon Valley company, whereas Mercury brings so much more I got it,' he tweeted.
As an @SVB_Financial customer for the last 5 years, they are terrible as an actual bank & are getting what they deserve. Their tech stack has not moved 1 iota, their fees are punishive, and if you're not in SV you're @Mercury has done more for me than SVB ever did.
— Robert McLaws (@robertmclaws) March 9, 2023
Silicon Valley Bank (SVB) has announced that it is considering selling SVB Capital and SVB Securities, two subsidiaries that are not directly related to the bankrupt bank. Axios reports that financial firms such as JPMorgan Chase and PNC Financial Services are participating in the deal.
JP Morgan, PNC among suitors for SVB holding company
https://www.axios.com/2023/03/13/jp-morgan-pnc-among-suitors-for-svb-holding-company
In addition, it is also clear that HSBC Holding acquired the British division of Silicon Valley Bank for 1 pound (about 160 yen). HSBC said in the acquisition that the assets and liabilities of (U.S.) Silicon Valley Bank were excluded from the transaction, with CEO Noel Quinn saying, 'The acquisition is highly strategic for our business in the UK.' said in a statement.
HSBC to buy Silicon Valley Bank UK for £1 in rescue deal | HSBC | The Guardian
https://www.theguardian.com/business/2023/mar/13/hsbc-buy-silicon-valley-banks-uk-tech-startups
Related Posts:
in Note, Posted by logu_ii