Featured Story
BanksterCrime:
The US bank regulator is mulling legal action against former SVB executives.
WASHINGTON, December 17 (Reuters) The chairman of a major US banking regulator announced Tuesday that his agency is considering legal action against six former officers and eleven former directors of Silicon Valley Bank.
Chairman of the Federal Deposit Insurance Corporation, Martin Gruenberg, said in a statement that the agency was considering suing the former bank executives, who were not named, for “breaches of duty” in mismanaging Silicon Valley Bank’s portfolio prior to its abrupt collapse last spring.
Gruenberg, a Democrat appointed by President Joe Biden, has stated that he intends to retire from the agency on January 19. However, the decision to authorize prospective legal action was unanimously accepted by the FDIC board, which comprises both Democrats and Republicans.
The FDIC took over Silicon Valley Bank (SVB) in March 2023 after the bank experienced a significant run on its deposits after announcing that it needed to raise more capital to cover portfolio losses. Gruenberg stated in his prepared statements, delivered during a closed meeting of the FDIC board, that the bank’s leadership mismanaged key parts of the bank’s finances, resulting in its failure.
To prevent a broader panic in the banking industry, the FDIC was authorized to guarantee all of the bank’s deposits, including huge amounts of uninsured deposits, at a cost of an estimated $23 billion to its deposit insurance fund.
“As a result of the mismanagement… SVB suffered billions of dollars in losses for which the FDIC as Receiver has both the authority and the responsibility to recover,” according to the statement he issued.
Though meeting chair Luis Vayas Valdivieso attempted to strike a cheerful tone:
Gruenberg previously testified before Congress that the FDIC was looking into suspected misbehavior by SVB management.The FDIC has previously pursued legal action against executives of bankrupt banks. According to the FDIC’s website, the agency recovered $4.48 billion from executives of insolvent banks under its professional liability program between 2008 and 2023.
Don't Miss
Second Bank Run In Two Weeks As China’s Banks Are Caught In A Self-Destructive “Doom Loop”
Three weeks ago we reported that China’s Henan Yichuan Rural Commercial Bank, just outside the central Chinese city of Luoyang, was the latest small-to-medium Chinese…
Its BS, Fracking Blows Up Investors Again: Phase 2 Of The Great American Shale Oil & Gas Bust
In 2019 through the third quarter, 32 oil and gas drillers have filed for bankruptcy, according to Haynes and Boone. Since the end of September, a…
Impeachment Theater Offers Americans Glimpse Of The Unseen-Unelected Who Actually Rule Over Us
American voters have been introduced to the idea that the elected President of the United States can be accused of “undermining” foreign policy determined by…
Goldman Banker On Trial Had $24,000 Hidden In His Sunglasses Case
The very good criminal has their secret stash of cash that they are either hiding from the government or using for illicit “working capital” purposes. Usually,…
The Beast Is Almost Complete, Deutsche Bank to Replace 18,000 Workers with Robots
Deutsche Bank plans 18,000 job cuts in robot strategy called “Operations 4.0”. Operations 4.0 Underway Deutsche Bank says Operations 4.0 is already underway. The plan…
