it won't surprise anyone that silicon valley bank went nearly a year without a chief risk officer. venture capitalist fueled the banks growth by forcing the companies invested in and advised to keep their money at silicon bank. and then those same vcs turned around and sparked the bank run by telling companies to pull their money out creating more chaos, more panic. signature bank found themselves in the middle of a sand bank with a climb summary at the crypto exchange ftx. at the banquet them open multiple banks, they ignored red flag after red flag. it's all just a variation of the same theme. the same root cause of most of our economic problems, wealthy elites do anything to make a quick profit and pocket the rewards. when they are risky behavior leads to catastrophic failures, they turn to the government. they turn to the government asking for help expecting workers and taxpayers to pay the price. too often workers do. even though no taxpayers money is being used to say the deposits and i understand why americans are angry even disgusted at how quickly the government mobilize wi

silicon valley bank was mentioned as a particular case. with, as of september 30th, 2020, to the market value is held to maturity bonds just slightly above the value of its total equity. so clearly the regulators should have been becoming aware of risks if they weren't already. surrounding silicon valley bank, commissioner hewlett, if the uninsured depositors had not force the bank to close, how much longer do you think the regulators would have allowed silicon valley to remain open? >> without intervening? >> in milieu was in the process of being initiated. however, the bank run occurred before the mou was initiated. so i believe it would have depended upon how the bank how the bank responded to the m.o.u. if they did not respond to the m.o.u. or any subsequent orders, we would've had to take it to another level in the form of a consent decree and a cease and desist. is hard for me to say sitting here today how long, because it depended upon the response. >> and as you're well aware there are state-chartered banks and in federally charter

>> and the point that silicon valley bank ran's began. we really began enhanced monitoring of all of our community banks. we received our lab reports. we monitored the deposits on an hourly basis because once that fear starts it is easy for it to spread, regardless of how well and the bank management is running the bank, regardless of how much capital -- the fear causes. we were monitoring very closely to try to contain it. >> in your role as commissioner, what do you feel? what do you feel was your responsibility? or, did you have a responsibility as i started to develop? i guess that's the question. >> we were focused -- as a result of the run, on all of our other banks within california. in the focus, we contacted each and every one of our bank that we thought might be a risk from the fear, and the contagion, to give them as much support as possible. >> okay. >> fortunately, we were able to resolve a number of the issues. that fear and that contagion did not spread throughout our financial system. >> were you in contact with the fdic t

greg becker, former ceo of silicon valley bank. mr. scott shea, cofounder of signature bank, and mr. michael roffler, ceo of first republic bank. we take all of you all for being here, you will all be recognized for five minutes to give an oral presentation of testimony but without a objection, all of your written statement will be made part of the record. mr. becker, you are now recognized for five minutes. >> huizenga, ranking members green and foster, and member of the subcommittee. thank you for the opportunity to appear before you today. my name is greg becker, and i was that ceo of silicon valley bank. i'm here today to answer your questions about what happened at svb to the best of my memory. at the outset, i want to be clear that i never envisioned myself or svb being in this situation. i was employee for svb for nearly 30 years and ceo for the last 12 years until it was taken over by the fdic. i believed in the bank and its mission and care deeply about art more than 8000 employees and their families. i was committed to our cl

greg becker, former ceo of silicon valley bank. mr. scott shea, cofounder of signature bank, and mr. michael roffler, ceo of first republic bank. we take all of you all for being here, you will all be recognized for five minutes to give an oral presentation of testimony but without a objection, all of your written statement will be made part of the record. mr. becker, you are now recognized for five minutes. >> huizenga, ranking members green and foster, and member of the subcommittee. thank you for the opportunity to appear before you today. my name is greg becker, and i was that ceo of silicon valley bank. i'm here today to answer your questions about what happened at svb to the best of my memory. at the outset, i want to be clear that i never envisioned myself or svb being in this situation. i was employee for svb for nearly 30 years and ceo for the last 12 years until it was taken over by the fdic. i believed in the bank and its mission and care deeply about art more than 8000 employees and their families. i was committed to our cl

becker, quickly during the time the silicon valley bank didn't have a chief valley officer and who have been overseeing to hire and define a candidate. >> congressman, i disagree we county take riskmanment seriously. >> there was no one in charge but that's fine. >> there was a team of senior executive people in leadership positions and. created office of cro and reported to me and chair of the risk committee and we were actively engaged in risk managementnt broadly across the organization in being row responsive to the regulatory feedback. >> like in my car business having ability to sales cars and not having a sales manager. i yield. >> the gentlewoman from ohio has five minutes. >> thank you. i want to n take a moment to acknowledge the hard working americans that were mentioned at your banks and nay were nationwide and silicon valley bank bankin and signature. in my otay mesa town in my third congressional district, the home of ohio state teacher retirement system took the biggest hit and over $27 million invested in your bank. meanwhile with the reports that have come to light sinc

>> i'm responsible for silicon valley bank. >> mr. rothler, do you take any responsibility for the silicon valley bank failure? >> as i said earlier, regardless reof what caused this, i take responsibility for clients and employees every day in making chew they're taking care of and supported. >> mr. shea, do you take any responsibility? >> as chairman, i feel i fulfilled my responsibilities responsibly. >> what's troubling about your responses and sitting here is the idea that your lack of governance and oversight and mismanagement and ecosystem in the country and as a result the communities of jurisdiction and the be depositors and the lives are not impacted and it's mind boggling to me and do you believe of the failure to do with poor governance and risk management practices and yes or no, mr. becker. >> yes or no, do you agree with gao statement that it was poor governance and poor risk management. >> congressman, i take responsibility for the decisions i make. >> that's a nonanswer. mr. shea, do you disagree with gao's statement

becker, do you take any accountability for silicon valley bank's failure, yes or no? >> congressman, i was the ceo of the institution, so i am responsible for silicon valley bank. >> mr. roffler, do you taken responsibility for first republic bank's failure? >> as i said earlier, regardless of causes, i take responsibility for our clients and for our employees every day, in making sure that they are taken care of and supported. >> mr. shay, do you take any responsibility for signature bank's failure. >> mister chairman, i believe i filled my responsibilities responsibly. >> what is very troubling about each of your responses and sitting here is that the idea that your lack of governance and oversight and miss management has disrupted the entire regional bank ecosystem in our country. and, as a result, our committee, and other committees of jurisdiction, are now having to step in to figure out what we can do to help protect small businesses and other depositors to make sure that their lives are not further impacted. so it is mind-boggling to me that you can't take full

and i always comment that it took it took me leaving silicon valley to really appreciate silicon valley, which is sort of an irony, but going to a place like china, an emerging market that started with very little and then created something such high impact makes you realize how much silicon valley has to offer the rest of the world. but what they have to do, kind of get out of the silicon valley bubble and realize that, okay, we're using world class solutions to solve. first world problems. what if we use what these world class solutions to solve the developing world's problems? that impact can become even greater. and so that's a long way of answering your question, matt, but just to say that the learnings were ways and the time spent, alibaba was extremely educational. and i think that that's also part of the the reason for the motivation in writing this book is to kind of show these aspects of what was able to do with very basic technology, start in there you reference that quote from jack ma about, you know, the ingredients success were no business plan, no money and no something e

they're making the case for banks to be able to do what silicon valley did. we're making the case for doing something that can have an impact on the people who have the responsibility to manage the depositors' money. they're not. now, mr. director, is it true that the stress test can have an impact on the decisions that regulators make? once they review it, if it's an adverse conclusion, can it have an impact on their decision? mr. clements: it is a factor in the supervision of an organization. mr. green: so it can have an impact on what they think, can it not? are you shy about saying that an adverse stress test will have an impact on the decisions of regulators, mr. director? mr. clements: the supervisory test is an important element. mr. green: i understand. let's talk about the stress test. mr. clements: yes. mr. green: ok. thank you. [talking simultaneously] because of changes, the stress test was scheduled for 2024 for silicon valley bank. let me use my last 48 seconds to say this. i want to commend all of the members for their questions. but i want to

i invested all in silicon valley bank.eone would slap jimmy kimmel at the oscars damn you jimmy and your un-slappable charm [ laughter ] >> seth: so what, wally gets two cameras now? [ laughter ] [ cheers and applause oh, good i'm glad you're so happy for him. anyway, so, as you heard there, biden used words like "safe," "confidence," and "rest assured" over and over. and while that's absolutely the right thing for a president to do in this situation, generally speaking, i never personally felt assured when a president has said the words "rest assured. unless it was obama. he was the only president who seemed calm while also making you feel like a dork for being worried. "no. oh, no some of you are running around saying, 'hey, my money's gone. i can't get my money.' well, listen up, you all need to chill the [ bleep ] out. [ laughter ] he'd be so cool about it you'd start thinking, "yeah, i don't need money especially since i got plungy. he's got a pirate hat now. pirate hat doubles the value." in fact, biden was so concer

we are from the former executives of silicon valley bank and signature bank. their obsession with stock prices, and their own compensation. their profit at all costs mentality that there banks off a cliff putting paychecks to small businesses at risk risk. they just could not have known the fed would raise interest rates despite regulators and other banks and investors running over and over about interest rate risk. they could not have known for they could not predict the social media panic despite knowing for years her customer bases were concentrated and posed a risk. they just could not have known that growing so fast to grow their bonuses when there banks at risk despite repeated warnings. it was basically the dog ate my homework for three long hours with these bank executives feel that banking ones were when there banks for acid doubled out risky bets on riskier lines of business i was having to worry about whether they do the decisions made any sense as long as the profits kept going up and up and up. this spring those bad decisions finally caught up wit

joe: clay is known as the black godfather of silicon valley.that of a man who scaled obstacles on his way to becoming a tech pioneer. chris: dad was born and raised in a city called kinloch, missouri. this was predominantly a black town. it was right next to a predominantly white town called ferguson, missouri. roy clay, junior: now, his mother told him from his pre-teenage years that he should never let racism stop him, and that it was something that he would probably have to deal with his entire life. joe: clay loved math and technology so he applied for a job at mcdonnell aircraft company inin saint louis. chris: he was told that the company could not hire him because they did not hire "professional" negroes. joe: but clay didn't relent. he applied again and was eventually hired. he then followed his next opportunity to the bay area as a computer programmer wiwith laurence e livermore national laboratory. roy: so he had that opportununity to come and basically do fortran programming to simulate what a nuclear-- what the effects of a nuclear

- silicon valley bank? yes, exactly- _ silicon valley bank? yes, exactly- if _ silicon valley bank? yes, exactly. if we _ silicon valley bank? yes, exactly. if we see - silicon valley bank? yes, exactly. if we see first. exactly. if we see first republic bank go to the wall which seems pretty much 100% likely at this point, this will be the fourth bank in the us to fail so the federal deposit in co corporation want to stop any momentum here and really distort the fears there are in the us that we are seeing a regional bank collapse. if we look at a broad index they are down 25— 30% so there are a lot of investors out there quite worried and the authorities are keen to draw a line under all of this. ~ ., ., ,, ~ of this. who do you think looks like they could _ of this. who do you think looks like they could step _ of this. who do you think looks like they could step into - like they could step into rescue first republic bank? you mentioned there are reportedly six banks in the frame. that is thought to include household names such asjp morgan and bank of america but also less well—k

for example, silicon valley bank. they operate for over 9 months without the chief risk officer . and the chief nursing officer is one of the most important people in a bank because that person's responsibility is to make sure that they've taken to account all foreseeable risk. and then the environment that we were in, it was absolutely clear that as an inflation started to take off, the federal reserve is gonna fund raising rates. i guess we, i agree that federal reserve raise rates that historically fast paced, but face should not have been caught salt flood for the that, that their customers, patty. and now we do have a new technology. what thank panics are now induce, or, or, or, or capitalized by social media. so in silicon valley which had people that were subject to a lot of groups think you have one social influence or put out a huge message in the, their social media. that's that hate, pull your money out because silicon valley is not a safe to just say and suddenly everyone did that. well, the best managers should have known that there people, their customers were subjec

>> senator, i was the ceo of silicon valley bank.ty for what ultimately happened. >> if you take responsibility that it will you give that 1.5 million dollar bonus back? >> senator, as i previously said, i will cooperate with the process. >> will you do it? you don't have to. will you do it. let's say they say no you don't have to give it back. will you give the back? because you said you care about your 8000 employees and their families. you say you care about everything you put everyone through. there are ceos and banks all across this country that are having to pay up for your mistake. he said he went to hawaii. did you have a chance to walk on the beach set on the beach and when you did did you think about what you've done to these people. if so, will you give back the 1.5 million from your fy 2022 performance? >> senator, as i previously said. i committed to cooperate with the process, with the regulators. other agencies in order to be looking that specific question. >> i hope even if for whatever reason they say don't have to,

>> senator, i was the ceo of silicon valley bank.ity for what ultimately happened. >> if you take responsibility that it will you give that 1.5 million dollar bonus back? >> senator, as i previously said, i will cooperate with the process. >> will you do it? you don't have to. will you do it. let's say they say no you don't have to give it back. will you give the back? because you said you care about your 8000 employees and their families. you say you care about everything you put everyone through. there are ceos and banks all across this country that are having to pay up for your mistake. he said he went to hawaii. did you have a chance to walk on the beach set on the beach and when you did did you think about what you've done to these people. if so, will you give back the 1.llfrom your fy 2022 performance? >> senator, as i previously said. i committed to cooperate with the process, with the regulators. other agencies in order to be looking that specific question. >> i hope even if for whatever reason they say don't have to, i hope

silicon valley bank. what went wrong there? jane: well, before we dive into that, i have worked in financial markets all around the world. i have to say we are very lucky in america. this is the best financial system in the world. [applause] it is the envy of the world. david: ok. but despite it being the best, we have some problems from time to time. jane: yeah, but they are isolated problems. when you look at it, the financial system is broad, deep, it's competitive. we have large banks that are well-capitalized. and a sort of strength at the moment. we have medium-sized banks, regional banks, and by and large, they are equally well capitalized, serving their communities, playing an important part in the banking system. this is quite isolated. david: ok, but people are still interested in hearing about it. [laughter] so, your bank is well-capitalized. i should've said, your bank is a bank with about 230,000 employees. jane: yep. you david: and about an $85 billion market capitalization. so, your bank is in good shape. your ba

silicon valley bank executive bonuses were tied to the bank's return on equity.so they bought securities with higher yields to chase higher and higher and higher profits. when the warning light started to flash, and those investments started to lose money, your bank did not change course. instead, you double down. that signature bank executives had incentive competition plans that were tied to return on assets. quote, to reflect additional focus on profitability. reflect additional focus on profitability. focusing on profitability you did to the exclusion of, pretty much, everything else. when it became obvious that your banks were on the verge of failure, you another executives trying to cash out. svb executives, including mr. becker in front of us today, don't millions of dollars of company stock in the days leading up to the crash. millions of dollars in company crash leading up to the crash -- you are paying out bonuses until, literally, hours before regulators seized your assets. to people in ohio, and around the country, this feels sickeningly familiar. to

us lawmakers grill the former heads of the collapsed silicon valley bank and signature bank, looking to find out what went wrong. welcome to asia business report. i'm mariko oi. let's begin in japan. to go above 30,000. japan has just released growth figures. asia's second—biggest economy grew 1.6% on annualised rate, much better than what had been predicted. i spoke to neil newman from macquarie capital. we have been closely watching wage growth, the wage number, which hasn't really filtered through into anything visible as yet. the gdp number certainly does indicate there is a large amount of the domestic economy now contributing to this. as you mentioned cap ex, business spending was up 0.9 on the annual basis, way ahead of expectations. but even private consumption was also up, 0.6% against the market consensus of 0.4. even though it appears the wage number we have been looking at, the last numbers were in march, they were not that impressive, in fact they were quite depressing. the next key one will be injune, april's numbers, and that's when we will start to see the increase in

signature bank and silicon valley bank have been defending their leadership.ers blame their poor management for theirfailures after blame their poor management for their failures after silicon valley bank ran into trouble when depositors withdrew funds at an alarming rate and that caused a run on the bank and triggered panic within the banking system. now congress wants to know what went wrong. it was the first time anyone had heard from the former ceo of silicon valley bank, after the spectacular collapse of the financial institution he ran for more than a decade. he apologised for what happened but did not seem to take any responsibility for the eventual collapse. the former executives that were there were slammed for the millions of dollars they received in compensation. they were asked if they had any intention of returning some of those funds.— those funds. how much of the $40 million — those funds. how much of the $40 million that you - $40 million that you earned from _ $40 million that you earned from loading up sbb bank with risk are — from loading up

>> stephanie, silicon valley loves a story like this.nford drop out, who decided to start a technical biology health company. there were so much to this. they raise nearly a billion dollars in funding. and again, the young glamour of it all. people got caught up, there were a lot of investors, including the devos family, rupert murdoch, walgreens, safeway. lots of these -- et cetera. and it was great for several years. until people found out that it wasn't. and the crash like you said was immediate. the book bad blood came out from the wall street journal. did wall street journal report pillar care john carew. and everybody was hip to the idea that she was very likely a fraud. then came the trial. it lasted for months and months. homes, very dramatically taking the stand and trying to convince the jury that she wanted to help people. and save lives, and raise the money for all the right reasons. but when the phone calls were played that showed her literally lying to investors about where machines were being used when they weren't, how we

called _ company in silicon valley called beatnik.lled beatnik. i'm also a singer songwriter, i could play most — singer songwriter, i could play most of— singer songwriter, i could play most of my songs on the piano and sing — most of my songs on the piano and sing. i'm not a good drama. one_ and sing. i'm not a good drama. one day— and sing. i'm not a good drama. one day i— and sing. i'm not a good drama. one day i was out at a club and isaw_ one day i was out at a club and i saw an— one day i was out at a club and isaw an empty one day i was out at a club and i saw an empty dance floor with red and — i saw an empty dance floor with red and green lights flashing in time — red and green lights flashing in time to the music and i thought. _ in time to the music and i thought, i wonder how they do that? — thought, i wonder how they do that? there was a disco lighting _ that? there was a disco lighting console, i was able to -et lighting console, i was able to get my— lighting console, i was able to get my hands on one and adapted to pl

the benefits from the bipartisan chips bill right here in the bay area. >> computer chips put silicon valley on the map. they are the silicon in silicon valley. but in the past few decades, the chips we design here are actually manufactured overseas. in factories called fabs in taiwan and china. today applied materials, which makes the machines that makes the chips, will give us more details on the new research facility to open in sunnyvale. three football fields long. this is an artist's rendering of the new facility called epic. new investment, new jobs, most importantly, made in america, and as you mentioned, vice president harris will join the briefing to make sure americans get the message the bipartisan chips bill signed into law by president biden last summer is bringing manufacturing and research back to america. applied materials says its new facility will employ 2,000 people, mostly researchers, some pulled from current facilities owned by giant taiwan semiconductor and samsung from overseas. concerns has been mounting about depending on overseas manufacturing, particularly from ch

and eventful stop in the silicon valley. she is now on her way back to washington after taking off from the airfield around 5:00. this is in old-school silicon valley company and she came to town bearing gifts. we were embedded with her team all day and had a look at the message that she was here to talk about. >> for the vice president today it is a homecoming to the bay area. also a chance to celebrate tens of billions of dollars of government funding staying here for texas businesses in silicon valley. the vice president began her day with a nod to the past. greeting local members of the chapter of alpha kappa alpha. she was and a.k.a. at howard university. before going down to 101 and past admirers for a tour of applied materials in sunnyvale. here to address executives of the trillion dollar semiconductor industry with a clear message that america needs to lead when it comes to making chips that make almost everything run. >> i believe that we are embarking on a new era. and so much of it is being created and spurred by

our silicon valley correspondent james clayton sent this report.s day would never happen. elizabeth holmes walking into a texas jail. the former billionaire had a penchant for expensive restaurants. she will now have to get used to prison food. it is a spectacular full from grace from the former billionaire. elizabeth holmes captivated investors with her amazing claims. even though she was a university dropout with no medical degree, she was incredibly convincing. she told investors that she'd invented a machine that she called the edison that could diagnose hundreds of diseases with just a few drops of blood. we diseases with 'ust a few drops of blood. ~ ., ~' diseases with 'ust a few drops of blood. ~ ., ~ ., , ., ., blood. we would like to see a world in which every _ blood. we would like to see a world in which every person _ blood. we would like to see a world in which every person gets - blood. we would like to see a world in which every person gets access . blood. we would like to see a world | in which every person gets access to this kind

the run on the bank at silicon valley bank customers withdrew $42000000000.00 in just 10 hours. that's more than a $1000000.00 per 2nd. the government then took over and paid back uninsured depositors to the tune of $20000000000.00. meanwhile, c o greg becker was getting richer, selling his bank stock shortly before the crisis and bring his earnings for the past 4 years to 40000000 dollars. how much of the 40000000 are you planning to return? how many times what to do this data center, i promise to cooperate with the regulators. can you play the video for me? signature banks, founders scott shape, was forced to watch this old video of himself. the i happen to know for sure you're in the video orange. yes, i'm in that video and you show that video to the public. that video was designed as a morale boosting. but did you show it to the palm who it was shown at the employee parties, but it was silicon valley's former chief for went to hawaii, the day after his bank failed. that drew the most outrage. did you have a chance to walk on the beach, sit on the beach and when you did? did

our silicon valley correspondent james clayton has more. first of all, i think it is important to mention that just because elon musk has tweeted something doesn't necessarily mean it is actually true. you may remember i interviewed elon musk last month and i asked him who is going to be the next chief executive and he told me he had already made a dog chief executive. so it is sometimes difficult to know whether he is joking or not. it does seem like he is actually being serious this time. that would be a really significant moment for twitter. first of all, he said that the new chief executive is a she. i think that is really important, because the vast majority of tech bosses in silicon valley and elsewhere are men. so that would be a very interesting development. and it will be very interesting to know exactly what the chief executive, what power the chief executive will have, because elon musk will still own the company, will still have a huge amount of power so is this more of a technocratic role where you are basically doing elon musk

as a preliminary government report found both silicon valley and signature banks grew too fast. had too many uninsured accounts and made risk investments leading to their spectacular failures. the former ceos, however, declined to take blame. do, do you think that the poor management of you and your staff contributed to the failure of the back? i think the root cause was the panic that took place in a few hours on. so if you disagree, you think it was the right thing with the bank while i run on the bank? i think you think you were to run on the bank that caused the failure. is that what you're telling me? the run on the bank at silicon valley bank customers withdrew $42000000000.00 in just 10 hours. that's more than a $1000000.00 per 2nd. the government then took over and paid back uninsured depositors to the tune of $20000000000.00. meanwhile, c o greg becker was getting richer, selling his bank stock shortly before the crisis and bring his earnings for the past 4 years to 40000000 dollars. how much of the 40000000 are you planning to return? how many times we do this data cen