#SiliconValleyBank #youtube #SVB
U.S. Senate Banking Committee holds first of several hearings on collapse of Silicon Valley Bank and Signature Bank. First hearing hears from witnesses including Federal Deposit Insurance Corporation Chair Martin Gruenberg, Federal Reserve official Michael Barr, and Nellie Liang, under secretary at U.S. Treasury Department.

Subscribe to Yahoo Finance:

About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit:

Connect with Yahoo Finance:
Get the latest news:
Find Yahoo Finance on Facebook:
Follow Yahoo Finance on Twitter:
Follow Yahoo Finance on Instagram:
Follow Yahoo Finance Premium on Twitter: …(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

Silicon Valley Bank is one of the most well-known banks in the US, but it has recently come under scrutiny after a Senate hearing determined that it failed in several ways. The hearing was conducted to investigate what went wrong and why the bank faced major losses.

Silicon Valley Bank is a specialist bank that caters to technology startups, as well as venture capital firms and private equity groups. It has been operating for more than 35 years, and is regarded as a leader in the innovation and tech sectors, thanks to its experience in supporting high-growth companies.

However, last month’s Senate hearing found that the bank had not fulfilled its duties to some of its clients. Many startups and entrepreneurs reported having difficulty getting access to credit, while others said they had been denied credit entirely. There were also complaints about the slow and cumbersome lending process.

The issues arose from the bank’s practices when assessing the credit risks of potential clients. The bank often relied on projections and future revenue estimates to decide on whether or not to provide credit to a company, rather than looking at their financial history or current situation. This approach meant that the bank was often underestimating the risks associated with lending.

Additionally, the bank’s corporate culture was also brought into question during the hearing. Several witnesses testified that employees had been encouraged to prioritize loan volume over credit quality, which put the bank’s overall stability at risk.

The hearing resulted in a call for Silicon Valley Bank to improve its lending practices and overhaul its credit assessment procedures. The bank has since released a statement acknowledging the need for improvement, and stating that it intends to “reassess and enhance” its procedures.

As one of the most influential banks in the technology sector, Silicon Valley Bank’s failure in these areas is a reminder that no bank is immune from risk. While its leadership has pledged to make changes, it remains to be seen whether they will be implemented effectively, and whether the bank will be able to regain its reputation as a leading innovator in its field.

In conclusion, the Senate hearing on Silicon Valley Bank’s failure has shown that the bank’s practices were inadequate, resulting in major losses for the company and its clients. The bank must now take action to improve its lending practices and credit assessment procedures, to ensure that the risks associated with lending are properly assessed and minimized. Only then will it regain trust in the marketplace and regain its reputation as a leading bank in the innovation and tech sectors.