As you no doubt have heard, this week Silicon Valley Bank failed:
On Wednesday, Silicon Valley Bank was a well-capitalized institution seeking to raise some funds.
Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year-run.
Regulators shuttered SVB Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever. The company’s downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet. What followed was the rapid collapse of a highly-respected bank that had grown alongside its technology clients.
Even now, as the dust begins to settle on the second bank wind-down announced this week, members of the VC community are lamenting the role that other investors played in SVB’s demise.
It looks like some SVG executives might have sensed what was coming:
BREAKING: Before the collapse of Silicon Valley Bank, executives sold a lot of their shares.
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_whales (@unusual_whales) March 11, 2023
Right on cue, former Clinton Labor Secretary Robert Reich, who currently makes a decent living lecturing about income inequality, is already assigning blame in a predictable fashion:
By the way, Trump deregulated banks like Silicon Valley Bank, which failed Friday.
— Robert Reich (@RBReich) March 11, 2023
After Reich’s tweet, Glenn Greenwald served up some important reminders
Biden has been president for more than 2 years. His appointees control all regulatory agencies. Until 2 months ago, Democrats controlled both houses of Congress.
So whose fault is this week's collapse of the Silicon Valley Bank? Obviously: Trump's (probably Putin's, too). 🌊 https://t.co/2VCxgJFQce
— Glenn Greenwald (@ggreenwald) March 11, 2023
Lefties like Reich couldn’t be more predictable.
"Trump does all the bad things. Biden does all the good things."
— ℝ𝕠𝕔𝕜𝕖𝕥 (@rdbrewer4) March 11, 2023
now let's hear some pearls of wisdom from Krugman…
— Fusion_Now (@russsellcrow) March 11, 2023
Reich's argument falls far short on facts and reason. https://t.co/T5ub3tcKyU
— John David Soriano (@sorianojohnd) March 11, 2023
As do almost all of his other arguments.
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