It all starts in 2021, the start-ups have received enough investment which has increased the funds generated by the Silicon Valley Bank from 102 to 189 billion dollars, so the bank thought why not take US Treasury bonds to diversify a little and that's where the problem comes.

The Fed announces the week following an economic recovery,interest rates are raised,direct consequences the financing conditions of companies have become very difficult,the value of the bonds they had bought has lost value.With this wind of panic the start-ups wanted to withdraw their capital, so the bank was forced to sell part of its bond portfolio to pay the start-ups.

They recorded a loss of more than $1.8 billion thanks to this bad investment at the wrong time, when the bonds were losing value. The bank then decides to make a capital increase of 2.25 billion which should allow them to bail out the coffers, unfortunately people have become more afraid and have emptied everything.

To conclude, let's say that the federal government took things lightly, a law was passed in 2008 after the subprime crisis, to supervise banks with 50 billion management funds,Under trump the rules changed, banking institutions with more than 250 billion dollars were those who were monitored, sillicon valley had less than that so went under the radar.

In view of all this, wouldn't it be better to trust the blockchain and invest in a currency like Bitcoin?

#Fed #silicnvalleybank #BTC

According to media reports, Silicon Valley Bank (SVB) paid annual bonuses to all eligible employees while its CEO cashed out stock options before its collapse. 

SVB CEO Greg Becker sold $2.27 million worth of the bank stocks on Feb. 27, according to an SEC filing. The sales were part of a 10b5-1 program that Becker filed on Jan. 26.

Another SEC filing showed that Becker had sold $1.1 million in stocks in January to cover the tax liability. Per the filings, the CEO mostly sold his stocks between $285 and $302.

Meanwhile, a CNBC report said the top executives at the embattled bank, including the CEO, sold shares worth $4.5 million before its collapse.

Will SVB Get a Bailout?

These new revelations further shine the spotlight on SVB. It is the largest U.S. bank to collapse since the 2008 financial crisis, and several stakeholders are already calling for a government bailout.

Billionaire investor Bill Ackman urged the government to bail out the bank because several large venture capital-backed firms use it. According to Ackman, SVB’s failure could be disastrous for the economy.

Ackman noted that it was unlikely for another private bank to bail out SVB, considering what the regulator did to JPMorgan when it bailed out Bear Stearns.

He added:

“To be clear, a bailout should be designed to protect SVB depositors, not equity holders or management. We should not reward poor risk management or protect shareholders from risks they knowingly assumed.”

Several crypto community members have pointed out SVB’s failure as proof of the US.. regulators’ and policymakers’ hypocrisy.

Anti-Crypto lawmaker Senator Elizabeth Warren has especially come under criticism for tweeting about sham crypto audits when regulated banks are collapsing. 

#svb #silicnvalleybank #ceo #koinmilyoner #buildtogether