HOW TO RUN A BANK ..... INTO THE GROUND

REVEALED: Only ONE member of failed SVB's board had a career in investment banking - and the rest were Obama, Clinton mega-donors who 'grieved' when Trump won including one who went to Shinto shrine 'to pray'

 

Daily Mail

March 14, 2023 

 

                                      

      Elizabeth 'Busy' Burr, 61, credits her success with being in an improv troupe

                                  

Kate Mitchell, 64, has served on the Silicon Valley Bank board since 2010. Mitchell publicly said she prayed at a Shinto shrine in Kyoto after Donald Trump won the 2016 presidential election.

                                                            

Mary J. Miller, 67, served as Obama's under secretary for domestic finance at the Treasury Department from March 2012 through September 2014

 

Just one member of Silicon Valley Bank's board of directors had experience in investment banking, while the others were major Democratic donors, it has been revealed. 

Tom King, 63, was appointed to the board in September after previously serving as the CEO of investment banking at Barclay's. He has had 35 years of experience in investment banking.

 

Tom King, 63, was the only member of Silicon Valley Bank's board that had experience in investment banking

 

But he is the only one on the board with experience in the financial industry, while others are a former Obama administration employee, a prolific contributor to former House Speaker Nancy Pelosi and even a Hillary Clinton mega-donor who prayed at a Shinto shrine when Donald Trump won the 2016 presidential election. 

The board is now being investigated by federal authorities after it failed to prevent the bank from going under while it was investing clients' money in risky low-interest government bonds and securities. It has previously been accused of being too focused on woke issues.  

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Assets of US banks are worth massive $2TRILLION less than their accounts report and 200 banks could be at risk if customers rush to withdraw, leading academics warn

 

 

Assets held by America's banks are worth a staggering $2 trillion less than stated in their accounts because of 'unrealized losses' like those which triggered the collapse of Silicon Valley Bank, a study suggests. And a run on the banks would leave customers at nearly 200 institutions facing losses of up to $300 billion, according to the paper by leading finance academics. 

The paper said the value of assets across the U.S. banking system is '$2 trillion lower than suggested by their book value'. Those assets include Treasury bonds whose value has decreased significantly across the past 12 months because of an aggressive campaign of interest hikes by the Federal Reserve. 

SVB's collapse was partly because executives used its burgeoning customer deposits to buy these bonds, then lost money as it rushed to sell them at a loss amid a run on the bank. 

Researchers behind the new paper, published on Monday, said many more banks also have 'unrealized losses' on assets that are worth less than when they were purchased. Their figure of $2 trillion eclipses a recent estimate that U.S. banks are sitting on unrealized losses of $620 billion.