US Banking Crisis: The Truth Behind The Disaster

Comments · 5.1K

• ZO

  @zombiebraintherapist · 3 years ago

  I love how every level of management failed and they still felt like they deserved a bonus.

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• TR

  @trainedbyuk · 3 years ago

  When our banking system collapsed here in Iceland back in 2008, we threw those responsible in jail. Rich bankers shouldn't get bailed out while ordinary people lose their homes and life savings.

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• GI

  @GillerHeston · 2 years ago

  Really, banks require more regulation. The entire idea of banking as "let's gamble" is terrifying. Because they discovered in 2008 that the government will always bail them out, there are no repercussions. These bank crisis are so worrisome. This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. And this is only the beginning!

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• KE

  @Kevin-jc1fx · 3 years ago

  If a regular employee makes a mistake and the company looses a 100k, he guest fired or thrown in jail. If an executive makes a "mistake" that makes millions of people collectively lose hundreds of billions, he gets to happily exit with a fat check. Yeah, justice is well leveled up in this country.

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• IN

  @IndiaTides · 3 years ago

  Whenever I see cold fusion video, I get feeling that rich people are stupid at the same time I am poor.

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• JU

  @Jumpingjim-g6s · 3 years ago (edited)

  You damn well know that senior management at SVB knew that they were in trouble beforehand when they cashed out.   Every one of those cash outs should be clawed back along with the employee bonuses.

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• DA

  @Dan4096 · 3 years ago

  &quot;Greg was promptly yeeted from the board&quot;<br><br>Spoken in the calm, professional manner that Dagogo is known for made me laugh out loud 😂

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• TH

  @theinvestmentcorner4914 · 3 years ago

  Can you imagine putting two major banks under and never go to prison?

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• CA

  @Call-3E · 3 years ago (edited)

  I&apos;m a risk manager. In every organization i&apos;ve consulted or worked with, risk management is treated as a check list. NO ONE in management cares about risk management. It&apos;s considered a exclusively fiduciary obligation. When you present existential risks and demand contingency plans, typically management tells you there&apos;s management reserve or other management funds to address the issue. I&apos;m not privy to what happened at SVB but I&apos;m confident that Moral Hazard allowed for risky decisions to be made and ignoring contingency and mitigative actions. In other words, they knew that the FDIC and its funds would rescue them.

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• FO

  @forgotmyname898 · 3 years ago

  That Chief Risk Officer made the call of the century by getting out of there before this all blew up. Sounds like he probably knew how risky things were but the rest of management didn’t care

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• AN

  @AncientVantage · 1 year ago

  Housing crisis, health crisis, financial crisis, cost of living crisis, debt crisis, inflation crisis, Middle East crisis. How many crises can we endure? As I approach retirement with a solid financial cushion, I&apos;m anxious about a potential banking crisis. Is private equity a good option to grow my money securely? Any guidance in this regard would be much valued.

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• MA

  @masticorepoo · 3 years ago (edited)

  I used to work as a higher up in Deutsche Bank. One of the problems with SVB is that most of their clients are classified as high risk. In the normal banking world, most high risk businesses are offset by a large pool of low risk businesses such as doctor&apos;s offices, markets, cafes, etc. Often times the dollar amount of low risk to high risk is $10 to $1 and high risk businesses are charged with a premium in order to operate. SVB skipped over this and ran mostly high risk businesses. Their answer to combat the high risk was &quot;more funding&quot;. To be honest, it&apos;s an amazement they&apos;ve been able to stay afloat for so long given their businesses practices. The best thing they could have done is not take shortcuts and just do banking the way it should be done. The entire structure of this bank is backwards, like an upside down pyramid.

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