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Your comment ignores that SVB made bad investments for which they will not be held responsible.

jpgvm 4y ago
Management of all sorts of that run companies into the ground usually make out with their salary and bonuses. Unless we change the status quo about rewarding CXXs with huge amounts of stock AND giant salaries AND allow them to cash those stock grants out before retirement I don't see that changing.
colechristensen 4y ago
The bank doesn’t exist any more, the stockholders were wiped out and leaders will have lost tens of millions. How is that not being held responsible?
- rvnx 4y ago
  They still keep the salaries, the bonuses, the supercars, etc. And the customers who didn't want to ask questions how they were paying 5% interest on cash while equity was going down and bonds all-time low... They benefited from the scheme as well, they are not victims. The real victim is the taxpayer (or indirectly other bank customers through insurance mechanism) that is going to cover the losses.
- f6v 4y ago
  Loosing money is not being responsible. By that logic, I’m bearing the responsibility if my ETF go down in price.
  - rvnx 4y ago
    This is like the FB announcement where Zuck is "taking responsibility" https://about.fb.com/news/2022/11/mark-zuckerberg-layoff-message-to-employees/ https://about.fb.com/news/2022/11/mark-zuckerberg-layoff-mes... Yeah yeah, taking responsibility in a way that he is mostly not personally affected. Taking responsibility would entitle pouring back the billions he cashed out back into the company.
- lr1970 4y ago
  > How is that not being held responsible? This is just "cost of doing business" that can be factored in. Management had amble time to sell and reinvest their ill-gotten gains. Someone should go to jail for this -- that would be real responsibility.
rhaway84773 4y ago
Didn’t their shareholders get completely wiped out? How is SVB (to the extent it’s anything, it’s the shareholders), not being held responsible? The people being protected here aren’t SVB. It’s the customers.
- alecco 4y ago
  Before the collapse, executives sold shares. Gregory Becker, CEO, sold 11% on Feb 27, 2023. Before the collapse, executives sold shares. Gregory Becker, CEO, sold 11% on Feb 27, 2023. Michael Zucker, Counsel, 19% on Feb 5. Daniel Beck, CFO, 32% on Feb 27. Michelle Draper, CMO, 25% on Feb 1. Michael Zucker, Counsel, 19% on Feb 5. Daniel Beck, CFO, 32% on Feb 27. Michelle Draper, CMO, 25% on Feb 1. https://unusualwhales.com/news/numerous-corporate-executives-sold-silicon-valley-bank-sivb-stock-before-the-collapse https://unusualwhales.com/news/numerous-corporate-executives... Becker was a member of SF Fed and led anti Basel III regulation for SVB.
  - colpabar 4y ago
    I can't wait to see what they do next! Surely people with such excellent foresight should lead financial institutions for the rest of their lives.
AdamN 4y ago
You mean the people who no longer have a job, have an asterisk on their resume, had all their RSUs/options wiped out, and have to find a new job in a down market? Are those the ones who will not be held responsible? Oh maybe you meant the shareholders who funded this activity? Oh, the ones who were wiped out?
- prepend 4y ago
  Yes, those people who extracted millions in salary, bonuses, and stock sales and get to keep them. The shareholders are wiped out. But the bad management made out great. They don’t have to repay any of those ill gotten gains.
  - AnimalMuppet 4y ago
    "Clawback". This is exactly what it's for.
- lapcat 4y ago
  > have an asterisk on their resume SVB Securities' CAO served as the CFO for Lehman Brothers' Investment Bank https://news.ycombinator.com/item?id=35122311 https://news.ycombinator.com/item?id=35122311

Management of all sorts of that run companies into the ground usually make out with their salary and bonuses. Unless we change the status quo about rewarding CXXs with huge amounts of stock AND giant salaries AND allow them to cash those stock grants out before retirement I don't see that changing.

colechristensen 4y ago

The bank doesn’t exist any more, the stockholders were wiped out and leaders will have lost tens of millions. How is that not being held responsible?

rvnx 4y ago
They still keep the salaries, the bonuses, the supercars, etc. And the customers who didn't want to ask questions how they were paying 5% interest on cash while equity was going down and bonds all-time low... They benefited from the scheme as well, they are not victims. The real victim is the taxpayer (or indirectly other bank customers through insurance mechanism) that is going to cover the losses.
f6v 4y ago
Loosing money is not being responsible. By that logic, I’m bearing the responsibility if my ETF go down in price.
- rvnx 4y ago
  This is like the FB announcement where Zuck is "taking responsibility" https://about.fb.com/news/2022/11/mark-zuckerberg-layoff-message-to-employees/ https://about.fb.com/news/2022/11/mark-zuckerberg-layoff-mes... Yeah yeah, taking responsibility in a way that he is mostly not personally affected. Taking responsibility would entitle pouring back the billions he cashed out back into the company.
lr1970 4y ago
> How is that not being held responsible? This is just "cost of doing business" that can be factored in. Management had amble time to sell and reinvest their ill-gotten gains. Someone should go to jail for this -- that would be real responsibility.

rhaway84773 4y ago

Didn’t their shareholders get completely wiped out? How is SVB (to the extent it’s anything, it’s the shareholders), not being held responsible? The people being protected here aren’t SVB. It’s the customers.

alecco 4y ago
Before the collapse, executives sold shares. Gregory Becker, CEO, sold 11% on Feb 27, 2023. Before the collapse, executives sold shares. Gregory Becker, CEO, sold 11% on Feb 27, 2023. Michael Zucker, Counsel, 19% on Feb 5. Daniel Beck, CFO, 32% on Feb 27. Michelle Draper, CMO, 25% on Feb 1. Michael Zucker, Counsel, 19% on Feb 5. Daniel Beck, CFO, 32% on Feb 27. Michelle Draper, CMO, 25% on Feb 1. https://unusualwhales.com/news/numerous-corporate-executives-sold-silicon-valley-bank-sivb-stock-before-the-collapse https://unusualwhales.com/news/numerous-corporate-executives... Becker was a member of SF Fed and led anti Basel III regulation for SVB.
- colpabar 4y ago
  I can't wait to see what they do next! Surely people with such excellent foresight should lead financial institutions for the rest of their lives.

AdamN 4y ago

You mean the people who no longer have a job, have an asterisk on their resume, had all their RSUs/options wiped out, and have to find a new job in a down market? Are those the ones who will not be held responsible? Oh maybe you meant the shareholders who funded this activity? Oh, the ones who were wiped out?

prepend 4y ago
Yes, those people who extracted millions in salary, bonuses, and stock sales and get to keep them. The shareholders are wiped out. But the bad management made out great. They don’t have to repay any of those ill gotten gains.
- AnimalMuppet 4y ago
  "Clawback". This is exactly what it's for.
lapcat 4y ago
> have an asterisk on their resume SVB Securities' CAO served as the CFO for Lehman Brothers' Investment Bank https://news.ycombinator.com/item?id=35122311 https://news.ycombinator.com/item?id=35122311