Silicon Valley Bank was closed by the Comptroller of Currency, the F.D.I.C., and depositors on the run. Sec. Treasury Janet Yellen announced that all depositors would be insured for all their funds. Techies around the Bay Area gave a big sigh of relief as they learned their monies were secure: no need to panic. Yet.
Now just a few weeks prior to the takeover, the auditors gave SVB a passing grade: sufficient funds were available to protect all customers. But wait: the bonds on the asset side. What about them? They missed them; all of them. Incompetence, and worse. Criminal neglect, at least. The auditors deserve punishment. This is not just bad work; this is criminal, a violation of law, not just poor performance. Hmmm. What will happen?
Nothing. Welcome to US banking: a system run by Wall Street for Wall Street and all those who call themselves "Bankers". Really-Crooks and Confidence Men. OLD MICHAEL MILKEN, THE EX-CON, EVEN HE IS ON the loose again. Bernie Madoff died in Prison; Charles Ponzi died penniless. And on and on. SVB was not a large bank, only middle sized with $162 billions floating loose on its books. It figured(management figured) the could park liabilities(deposits) in treasuries at long term. Then the FED inconveniently started raising interest rates. The rest of us watched, and waited. SVB did nothing but stare at the clouds and hope for the best. Who are these people? Anyway.?
Where's Barney Frank? Oh, wait, he's on the board of a bank that needed some assistance from a fund of banks to stay solvent. Chris Dodd? Where he be?
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