that the bank's wine business was a key part of building its brand and connecting to Silicon Valley entrepreneurs. That year, SVB's wine practice"accounted for 6% of the bank's $14.6 billion gross loan portfolio," the website reported.. SVB said on its website at the time that"44% of U.S. venture-backed technology and healthcare IPOs bank with SVB.
Normally, if a person is seeking a commercial loan, a bank would request information on their company's cash flow and the available collateral, Metrick said. "While most commercial banks prefer proven clients, SVB likes to cement relationships with companies when they are economic toddlers," the article says."It has built strong relationships with the venture capital community."
Those relationships meant, long-term, more referrals to other people looking to get their own startups off the ground and expanding into private banking to wealthy clients, he said.
They didn’t have a risk manager and lived on high hog investments without hedging it.
Go woke go broke. Ask Disney and Netflix, they'll set ya straight.
That’s where ESG inevitably ends…
$73 million for blm? Wow!
Only 1 person on their board knew anything about banking. Most of them were engrossed in wokifying projects.
Bidenesque.
Big Dem donors along with the crooks at this bank got away with millions of tax payer money …and here we are the tax payer bailing them out ..
How about the $73,000,000 they gave to BLM?
and Biden illegally bailed out his billionaire friends.
I mean…the collapse was in the making since 2018. Many knew this would happen…because the same thing happened 10 years earlier! Government needs to stop working for banks and big corporations. People need to stop voting for politicians who take huge endorsements.
Recent insider trades and conduct of SVB’s Board need to be closely examined. There will be a deluge of stockholder derivative actions.
Liberal causes are not always the best investment
They bribed their way out of regulatory oversight and weren't even a large institution. The big banks achieved regulatory capture long ago and are fine with taking any amount of risk knowing the government will bail them out. Welcome to oligarchy.
Thanks VC Bros.