Aaron Klein, former deputy assistant secretary at the Treasury Department, discusses regulators’ handling of Silicon Valley Bank.
#CNN #News…(read more)
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Recently, a former US Treasury official weighed in on the failure of Silicon Valley Bank (SVB), a venture capital bank that has lent millions to start-ups and entrepreneurial firms in the tech sector.
Ted Kaufman served as a US Senator from Delaware and was also Vice-Chairman of the Joint Economic Committee. He argued that the failure of SVB should serve as a wake-up call for industry regulators and policymakers to re-examine the risks associated with venture investing in Silicon Valley.
According to Kaufman, the failure of SVB should not have come as a surprise to anyone. He suggested that the bank’s business model was based on lending to companies that were high-risk and high-reward, yet the risk side of the equation was ignored.
Kaufman highlighted that SVB’s lending strategy was focused on lending to start-ups who were pre-revenue, and many of these firms were overvalued. Kaufman argued that investment in these companies was speculative and that traditional lenders would have been much more cautious before extending credit to such companies.
Furthermore, Kaufman pointed to the fact that SVB did not have the same level of regulatory oversight as traditional banks, yet their business practices represented the same level of risk for investors.
Despite the ongoing challenges facing SVB, Kaufman suggests that their failure could be an opportunity for regulators to re-examine the way that venture firms operate in Silicon Valley. He emphasized the need for greater transparency and oversight, as well as more stringent regulation of the types of investments that venture firms can make.
Kaufman is not the first to point out the potential risks associated with venture investing. In recent years, there have been growing concerns about the tech industry’s vulnerability to a potential bubble, and some analysts have raised concerns about the inflated valuations of tech firms.
Overall, the failure of SVB is a reminder that the start-up world can be a risky place, and industry regulators and policymakers need to take a more cautious approach to overseeing the venture capital industry. As Kaufman notes, there is a need for greater transparency and regulation to ensure that start-up investing remains a viable option for investors.
Here is the truth while Nobody is telling the truth about the recent bank failures
https://youtube.com/shorts/kYi-8HeN3jg?feature=share
California was over regulated by officials, just like the trucking industry no one wants that work type. Blame the Federal Reserve rates up too fast destroying the recovery
Socialism for the wealthy, and darwinistic, dog eat dog capitalism for the rest of us.
go woke go broke hahaha
We average Americans have the understanding that Biden bailed out his billion dollar bank buddies. Not cool!!
Isn't it great that we have Trump to blame everything on…and the best part is, it doesn't matter if he was to blame or not. Trump is about to bring many more banks down.
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?.
Our time had reached its zenith, and it is now over. Everything not just banks collapsing, Stock including 401Ks, are suffering from the recession and crashes. My $750K retirement equity portfolio is losing money. Because of inflation, I keep losing. Similar to how Rome fell under its despotic emperors, this world will also. I apologise if you are considering retirement but are concerned that your pension won't cover the rising expense of living. There are terrible foreign policies worldwide, as well as disastrous regulatory, fiscal, and energy policies.
…more collapse than failure…?
Our country has to regulate banks and financial institutions.
We have too many Gordon Gekkos on Wall Street and in the Corporate Suites.
How many politicians had millions in svd
Poll?… really?
Oh, this is CNN… Communist non news… propaganda for the idiot crowd.
So… who did this clown work for? Obama?
This was caused by the government… even an average economist can see it.
She's not like other brokers that will start telling you stories and excuses why they trade didn't go well after collecting your
money
16:51I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN…I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED… CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?
It's not an isolated, economic event…two bank failures in a week is a warning sign, esp. for investors…
so who will be the fall guy, the Taxpayer of course.
Just look up Trump and Community banks
Trump is on tape causing this 5 years ago
Just remember people, regardless of party, regulations for banks exist for a reason. Maybe rolling them back was not a good idea. I saw some people with limited cognitive capacity blaming "wokeness". Guess that is easier than understanding what actually happened… like always.
This guy sells bedding on CNN. Goooo Journalism!!!
Joe Biden’s américa he has ruined everything
Roku losing that money is INSANE
I can see that conversation " should we screw over the ppl or companies"? " well if we do the ppl there're may me riots" "okay so let's to companies" !
Now if they bail out these banks I wanna see and hear the same bullshit that we hear about ppl getting relief, the humans
Biden says everyone will get every dime back. 90% uninsured. NO more bailouts. Let them fail.
Maybe liquidate the banking execs portfolio to help with those who are losing everything? Or those at the tippy top in government who are shielding these execs?
WHY SHOULD 250 MAKE US HAPPY! I NEED 2 .5 MILLION ABOUT WHAT PELOSI MAKE PER MINUTE WITH HER INSIDE TRADING SCHEMES
Dont forget to thank your king biden for your loss,you get what you vote for lol lol