.SenWarren is calling for accountability from Silicon Valley Bank CEO Greg Becker. 'You lobbied for weaker rules, got what you wanted, and used this opportunity to abdicate your basic responsibilities to your clients and the public,' Warren wrote Becker.
Silicon Valley Bank collapsed on March 10 after stocks began plummeting and venture capital firms had advised companies and clients to pull their money from the bank, leading to $42 billion withdrawn in a single day. By the end of the day on March 9, the bank had a $958 million negative cash balance, and its stock price had fallen about 60%.Warren, like many Democrats, is blaming rolled-back policies from the Dodd-Frank Act during the Trump administration for the collapse.
“There is much work to be done to understand the failure of SVB — and these efforts must start with understanding your role in the rollback of banking regulations that facilitated this failure," she continued. “Despite your assurances to Congress that SVB was sufficiently protected from risk because of your various efforts, it is now clear that SVB was wholly unequipped to independently assess its business’s risk,” Warren wrote. “SVB failed — while its Chief Risk Officer position sat vacant for eight months as its financial standing deteriorated — because it failed to address two key risks: concentration in your client base, and rising interest rates.
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