Ex-CEO of SVB Apologizes for Collapse but Shifts Responsibility

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Source: The New York Times
Ex-CEO of SVB Apologizes for Collapse but Shifts Responsibility
Photo: The New York Times
TL;DR Summary

Former CEO of Silicon Valley Bank, Gregory Becker, testified before the Senate Banking Committee and deflected blame for the bank's collapse, instead pointing fingers at regulators, the media, the board of directors, and depositors. Senators criticized Becker's decision-making and lack of accountability, with one calling it "bone-deep, down-to-the-marrow stupidity." SVB's failure was caused by its decision to buy government bonds during low-interest rates, which dropped in value when inflation caused policymakers to raise interest rates. The bank also had an unusually high proportion of uninsured accounts, making it vulnerable to a bank run. Democrats have introduced legislation to increase bank regulation, while some Republicans argue that regulations already on the books are not being effectively enforced.

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