The US tech sector has blamed Greg Baker, CEO of Silicon Valley Bank, for this. On the condition of anonymity, the bank employee told CNN that the CEO had to face the financial problems of the lender.
Silicon Valley Bank Crisis: Employees held it responsible and why?
Silicon Valley Bank After the sinking, the lines of worry are clearly visible on the foreheads of the financial experts. even that US Economy There are also many professions regarding. By the way, the Biden admin has asked the depositors to withdraw their funds. Also assured that the American banking system is quite solid. However, a blame game has started regarding the reason for the bank’s collapse.
The US tech sector has blamed Greg Baker, CEO of Silicon Valley Bank, for this. On the condition of anonymity, the bank employee told CNN that the CEO had to face the financial problems of the lender. Because of which everyone was upset and surprised.
What was announced by the SVB chief
The employee working in the asset management of the bank said that the move was completely unwise, as transparency and clarity led to trouble. Tech startups pulled out $42 billion on Thursday alone, leaving the bank with a negative cash balance of $985 million, after the SVB head announced fund raising of $2.25 billion in capital and $21 billion in asset sales.
Fed is also responsible for the collapse
The bank employee said that people were surprised to see how ‘stupid’ the CEO is. The insider also asked Baker to go to Kuwait and give the Middle East country one-third control of the bank. Jeff Sonnenfeld of the Yale School of Management’s Chief Executive Leadership Institute said SVB’s leadership deserves criticism. At the same time, Federal Reserve chairperson Jerome Powell was also blamed for this. He claimed that excessive and frequent interest rate hikes by the Fed are also behind this collapse.
465 billion dollars has been lost
Due to the collapse of SVB, a period of decline is being seen in the stock markets all over the world. Due to the fall in financial stocks in the last three days, more than $ 465 billion or Rs 38 lakh crore has sunk. Experts say that this trend may continue in the coming days and investors may suffer even more losses. Let us tell you that HSBC Bank has taken over the London branch of SVB for just one pound.