Comment by landemva
3 years ago
It's a club funded by interest rate skimming with opaque structure and reporting requirements which don't conform to typical reporting requirements. CEO of Silicon Valley Bank was on BoD of SFO branch, which failed to adequately regulate SVB.
https://www.svb.com/news/company-news/svb-financial-group-ce...
"SVB Financial Group CEO Elected to the Board of Directors of the Federal Reserve Bank of San Francisco"
why do you think it was a regulatory failure? it's not the Fed's job to make sure every bank has a sane business plan and rock solid conservative riskless strategy.
its job is to make sure the entire system can take the stress of failing banks.
the FDIC did its job too.
It's their job.
https://www.federalreserve.gov/supervisionreg/topics/capital...
The private club Federal Reserve branch in SFO was supposed to regulate SVB which had C-level executive on BoD of the regulator. The regulator failed to take prompt corrective action when SVB had capital inadequacy. SVB subsequently, months later, had inadequate capital to continue operating.
> SVB had capital inadequacy
based on which criteria?