Press release indicates she was hired in January.
Blurb indicates “senior roles leading critical risk management functions…” at several companies including AIG. I wondered of she was there during the credit default swap fiasco, so I went to look and her LinkedIn page is unavailable
Other people getting on the woke bank bandwagon rather than regulations to avoid this were removed
https://twitter.com/atrupar/status/1634932203741216775?t=pxcwa5jwVSYdYXonk9RY3Q&s=19
So basically,
A bunch of paid up economic libertarians (on paper) are now desperately trying to shift the narrative away from Trump being the one that got the SVB insolvency ball rolling (with them cheering on no doubt).
Oh, and some of them are also clamouring for a bailout of the bank via back-channels*
Note*
What I did not know was that in CA its the founders themselves who are liable for payroll directly if the employees do not get paid (I assumed that employees just became creditors). They are mostly totally exposed to the bank failing given accounts are only protected up to $250k.
I guess this is the classic “best defence is a good offence” approach. However alleging wokeness as the reason this bank went down is pretty weak.
Does this set a precedent that FDIC insurance is unlimited?
TBTF only applies if you are TB. NeighborhoodSavingsandLoan will likely cost depositors. But maybe not even that, so maybe.
Can any actuaries at fdic plz give us a play-by-play of the situation
How can 100% of all deposits be protected without any taxpayer money ultimately being involved?
It’s “technically true”, the FDIC is going to charge all of its insured banks a higher premium to make up for these losses. So taxpayers aren’t directly footing the bill, but the banks will definitely pass this cost onto their depositors so it’s still going to end up costing mainstreet
Also, FDIC has recent history of being extremely aggressive in pursuing all available private insurance that might possibly provide coverage. It won’t be enough to cover all the government’s losses, but it’ll help.
2008 was a miserable year to have D&O exposure in the financial services sector.
Thanks. Charging a higher FDIC premium is as reasonable an approach as any. Will be interesting to see what the final cost of this will be.
Yes. They will just pass the costs on.
I also completely forgot that I had two accounts at SVB UK Branch via the old TransferWise (now Wise).
Had very little in them as I only use them to transfer FX but I was surprised that Wise is one of the companies that uses them.
Agreed, I hadn’t thought of this solution but it seems like the best one available all things considered.
Gonna sound harsh, but honest question. Why aren’t we ok with these start-ups failing? The ones in trouble are going to be those that aren’t profitable and didn’t effectively manage their treasury. I feel like the tech industry has needed to come down to earth for some time now
My father was a banker his whole life. The one thing I know about bankers is that they are cold blooded capitalists across the board. If that’s what woke means to conservatives than the definition of woke has changed and the definition of conservative has changed.
Because a lot of tech jobs disappearing instantly because a bank failed might not be the best for the economy.
I guess nobody truly knows how many jobs would have been lost. Some counterpoints, though, are that unemployment numbers have been very good recently and isn’t this exactly what was happening across big tech? I think I saw that they laid off 100,000 employees in 2022, so why wouldn’t that be a similar issue
