Silicon Valley Bank:- Greg Becker On Forthrightness


There is an cautionary dispute over the value of forthrightness exhibited by Greg Becker at Silicon Valley Bank.




“Absolutely idiotic”: Silicon Valley Bank insider says employees are angry with CEO


Authored:- Matt Egan ( CNN )
Dated:- 2023-March-13th

Silicon Valley Bank CEO Greg Becker speaks during a conference in Beverly Hills, California, in 2022. (Patrick T. Fallon/AFP/Getty Images)
Greg Becker, President and CEO of Silicon Valley Bank (SVB), speaks during the Milken Institute Global Conference on May 3, 2022 in Beverly Hills, California. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)

One Silicon Valley Bank employee, who requested anonymity to speak candidly, pointed the finger at CEO Greg Becker for allowing the company to go down in history as the second-biggest US banking failure on record.

The employee said they were dumbfounded by how Becker publicly acknowledged the extent of the bank’s financial troubles before privately lining up the necessary financial support to ride out the storm.

This set the stage for the panic that ensued as customers scrambled to pull their money.

Idiotic and Transparency

“That was absolutely idiotic,” the employee, who works on the asset management side of Silicon Valley Bank, told CNN in an interview. “They were being very transparent. It’s the exact opposite of what you’d normally see in a scandal. But their transparency and forthrightness did them in.”

“People are just shocked at how stupid the CEO is,” the Silicon Valley Bank insider said.

“You’re in business for 40 years and you are telling me you can’t raise $2 billion privately?

Get on a jet and fly to Kuwait like everyone else and give them control of one-third of the bank.”

Stupidity, Errors, and Naivety

The Silicon Valley Bank insider said the mismanagement of the bank’s balance sheet heading into last week was “stupidity” and questioned the strategy of the CEO and CFO.

Still, the employee, who is a Wall Street veteran, emphasized his belief that the downfall of Silicon Valley Bank was brought on by errors and “naivety,” not outright wrongdoing.

“The saddest thing is that this place is Boy Scouts,” he said. “They made mistakes, but these are not bad people.”


Silicon Valley Bank did not respond to requests for comment but Becker has reportedly apologized to employees about the situation.

Unnecessary and Understandably

Because Silicon Valley Bank had sufficient capital far in excess of regulatory requirements, the announcement of an unsubscribed $2.25 billion capital raise Wednesday night was “unnecessary,” according to Jeff Sonnenfeld, CEO of the Yale School of Management’s Chief Executive Leadership Institute (CELI) and Steven Tian, CELI’s research director.

There was no need to simultaneously reveal the $1.8 billion loss, they added, saying the announcements should have been spaced out by a week or two to manage the response. The one-two punch “understandably sparked widespread hysteria amidst a rush to pull deposits.”

Federal Reserve – Jerome Powell

“There should be no mistaking that Silicon Valley Bank’s collapse was a direct result of the Fed’s persistent and excessive interest rate hikes,” they wrote.

Why? Because the Fed’s war on inflation depressed both the value of the bonds Silicon Valley Bank was relying on for capital and the value of the tech startups the bank catered to.

Of course, Silicon Valley Bank had more than a year to prepare for both of those issues.

Referenced Work

  1. CNN
    • ‘Absolutely idiotic’. SVB insider says employees are angry with CEO

2 thoughts on “Silicon Valley Bank:- Greg Becker On Forthrightness

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s