Tom Keene, Jonathan Ferro and Lisa Abramowicz have the economy and the markets “under surveillance” as they cover the latest in finance, economics and investment, and talk with the leading voices shaping the conversation around world markets. This show is simulcast worldwide on Bloomberg Television and Radio.
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SVB – Silicon Valley Bank, one of the most prominent and respected banks in the tech industry, has suffered a catastrophic collapse that sent shockwaves through the financial world. The news of its fall broke on March 10, 2023, and since then, businesses and individuals who had trusted the bank with their finances have been left reeling.
The collapse of SVB is being attributed to several factors, including failed investments, lax risk management, and a prevailing culture of recklessness and arrogance among top executives. As per Bloomberg Surveillance, the disaster has resulted in the bank’s total assets being wiped out, amounting to over $60 billion.
SVB was a pioneer of financing tech startups, and over the years, it had built a formidable reputation as a reliable source of funding for companies in the technology sector. However, the bank’s fortunes took a turn for the worst after it made several high-risk investments that failed to yield the expected returns. The bank was also accused of having an overreliance on a few key clients, which made it vulnerable to economic shocks.
The bank’s management has come under intense scrutiny as many have criticized their overall approach to risk management. Reports indicate that the bank had little regard for the potential downsides of its investment decisions, instead choosing to chase high rewards at all costs. This attitude led to several disastrous acquisitions and investments, which eventually led to the bank’s downfall.
The collapse of SVB is set to have far-reaching consequences, not only for its clients but for the wider tech industry as well. The bank held significant investments in tech giants like Facebook, Apple, and Google, which are likely to be affected by the collapse. The bank’s clientele, which consisted of several high-profile startups, also face an uncertain future, and many are now looking to secure alternative financing arrangements.
While the full extent of the fallout from SVB’s collapse remains to be seen, one thing is clear – the bank’s fall is a stark reminder of the need for responsible risk management and the dangers of reckless decision-making in the financial sector. It serves as a cautionary tale for other banks and financial institutions that should always prioritize risk management over high rewards.
In conclusion, the SVB collapse is a sobering reminder that no financial institution is immune to failure, and investors should always prioritize due diligence and risk management. The tech world, in particular, can now expect significant changes as VC’s and investors tighten up their lending practices. As for the bank’s clients, the search for alternative funding options continues. The lessons learned from this debacle are crucial in ensuring greater transparency and accountability in the financial industry, and it remains to be seen whether other banks will take heed.
Priya is correct we do need 6.5% in order to collapse the Russian oil market and detonate some of the dinosaur banks that have just gone on too long
Lisa is a shining star. Unfortunately, due to the hyper partisan prism of Tom, I haven’t viewed Bloomberg for years. I regret missing the rise of Lisa and her Econ smarts. She and Sarah Eisen of CNBC are the cream of the crop on days like today for their insights and the questions that beg to be asked.
Yeah, here is chief scumbag go F yourself and your scumbag J ews who own you!
holy crap….tom just talks in circles….stop pumping. Are you and jim cramer bros?
big banks are resilient people….dont panic lol
a bank thats so bad they go under while right in the middle of the so called greatest economy of any state….this is a joke…
how are you blaming this on the region lol….
SVB is indeed a VC bank. The virtuous cycle of investment in startups, then the liberation of funds at IPO, is both the source of their success and the source of their issues.
The government had better not provide a single dollar to these failing banks. None of their expenses, payroll, assets, operations should get a single taxpayer dollar – with all that we pay for financial services, they are expected to act professionally and deal with our money very wisely.
Depositors and lenders (clients) that did not work inside the institutions are the only entities that should get a dollar of insurance for their losses.
Tom's Hubris is almost as agregious as his constant passive aggressive throat clearing
2019 banks were deregulated by the then administration from stringent rules that would have helped prevent the Silicon Valley Bank crash.
You're right. It's not 2008, its worse.
Who bails the Federal Government out this summ
All these ''experts'' can say this and that, but one question that has not been answered is what's brewing in the dark American underbelly that is causing this?
This channel is a mouthpiece for the Biden administration. Yellin and Powell , " Two good people to have"!? What a load of crap! Channel blocked!
"The BRICS members are sharing a bottle of wine as sanctions back fired "
More banks are still going to collapse as more people will withdraw their assets from banks and nothing Left with banks.
Swift action is required now
Wait…….it might be idiosyncratic!
Many USA banks will collapse!!!!
BIDEN, STOP YOUR STUPID WAR !
This didn't age well since big banks are failing just 2 days later
U can't bailout ppl. They won't b held accountable for their bad management.
Absolutely right. This is a generation going into retirement taking their liquidity with them. Then add volker plus rates rise and no visibility in mark to market assets since 2008 and banks are all vulnerable
Silvers a good preserver
too juu to fail
damn they sweating "its not a bank?" or "its not a normal bank?" make up ur mind, it still has the word "bank" in it, whats this gaslight attempt??
it holds money, it gives loans, it is a bank
First Solar, CRM, NVDA, GE all pumped tp the maximum. Stop Wallstreet!
day by fay insane price targets pumped by organized crime banks
without crashing the stock market ponzi inflation never stop
as long NVDA is a 600 billion company FED needs to hike. stop the criminals at wall street!
So bad CEO’s trying to get all out before u !!!!!
Vote Democrat again 2024 But have you tent and Bag to sleep in ready. Haha Biden and the Democrats F Y good
"Nothing to see here"
Does anyone with common sense trust the experts? They only reveal the facts after the facts are revealed anyway! What we are seeing now is everyone trying to say it is all FINE. The large banks are FINE.
Will they talk about unrealized losses that the big banks are holding? Commercial Mortgage Backed Securities, for instance? Don't ask! It's all FINE. Empty store fronts? Ignore them! It's all….yep, FINE. Balance Sheet? Don't ask.
"There are some losses"….oh, really!?
1st the plandemic, then the fast crash. Suicides everywhere.
AG?
WTF!!!
When are Bankers going to go to JAIL!!!!!!! Why do the Rich think it is ok to LOOT the poor to pay for their mistakes"???????????? How do you people not even address this on your show?
TRASH PEOPLE!!