@jimfesta8981
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.
@trainedbyuk
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.
@mechellemeldrum
Finally, someone spoke to a real economist. Thank you Mr Nasser Mustapha!
@Dan4096
"Greg was promptly yeeted from the board" Spoken in the calm, professional manner that Dagogo is known for made me laugh out loud 😂
@Call-3E
I'm a risk manager. In every organization i've consulted or worked with, risk management is treated as a check list. NO ONE in management cares about risk management. It's considered a exclusively fiduciary obligation. When you present existential risks and demand contingency plans, typically management tells you there's management reserve or other management funds to address the issue. I'm not privy to what happened at SVB but I'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.
@Kevin-jc1fx
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.
@MarkDavis-wm9yx
As a Canadian, I appreciate Mr Nasser Mustafpha for this.
@IndiaTides
Whenever I see cold fusion video, I get feeling that rich people are stupid at the same time I am poor.
@gioac96
I work in the tech sector. You wouldn’t believe the amount of cool tech companies that live for years with negative cash flows, while overpaying their employees and management. It’s going to be tough in the upcoming years, but this industry needs to learn that companies can’t survive on the promise of future returns alone.
@theinvestmentcorner4914
Can you imagine putting two major banks under and never go to prison?
@ClementRusso2
The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.
@masticorepoo
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'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 "more funding". To be honest, it's an amazement they'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.
@forgotmyname898
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
@bobbymainz1160
The current system is completely unsustainable. The only reason it continues 'as if' is lending and debt. Lending for healthcare, for homes, for education, and plain old credit cards. trouble is, when the bottom falls out, the lenders get bailed out and consolidated, and everyone else loses their shirt.
@colinsmith1495
My biggest problem with this kind of failout (because that's what it is, regardless of what it's called or who's being bailed out) is that it fails to hold people accountable for their failures (the SVB execs may be held accountable another way, but the businesses that turned a blind eye to it all and put their money into it anyway won't be). That only encourages repeats of this same mistake. Without consequences, people in power won't learn.
@UndisclosedDoor
Coldfusion saying ‘yeeted’ was the most unexpected and hilarious part of any video he has ever made.
@EngineeringMindset
Literally just told a friend "I can't wait for ColdFusion to cover the SVB story" and here it is. Excited to watch.
@GillerHeston
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!
@trevorredlarczyk5057
Cold Fusion does the best break down and is so soothing to listen to no matter how dire the situation is.
@zombiebraintherapist