The optics aren’t always good when you fly 1st class to your Maui oceanfront home after something like this.
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49 thoughts on “Escape To Maui: Living In Disgrace Never Looked This Good!”
The optics aren’t always good when you fly 1st class to your Maui oceanfront home after something like this.
Sadly, the era of tax payer bailouts for bank fails, leaving poor manager practices allowed a free pass, will continue. With all the land Zuckerberg and Oprah have bought up, along w/others…one only can wonder if the majority of the islands will be privately owned?
Typical steal peoples money run off to a private community in Hawaii
Pure and simple, SVB needed to diversify their deposits! This lands on the feet of the Board of Directors who were incompetent at best, their Chief Risk Officer and CEO Greg Becker. Additionally, having worked there for several years, the C suite always touted what a great 40-year relationship they had with the VC community. You might think that over again because in the end they screwed you big time!!!
I know that your goal here is to make them seem lavish, but Puamana is pretty low end, so there’s that, and they could have afforded to fly private vs “$1k” for first class. There are likely dozens of other banks that bought the same long term bonds. The issue is that a bunch of people decided to run for the exit at the same time and the FDIC has made the foolish mistake of thinking that $250k limits would deter that. Well it didn’t, especially for a small business bank where most have more than that in an account. They need to remove the limits.
FDIC needs to increase the insurance coverage by double and has been indicating that it may actually occur. That insurance is meant to protect the Average Person and not Businesses and the Wealthy. For them there is insurance that they can purchase to better suit Their Needs and Protect Their Assets. Apparently it’s time for people, depositor’s, to discover who/what/how much the FDIC Covers. At one time this was taught in Economics and Math classes, beginning in 5th grade through 12th. This was Not a “Small Bank” and is/was a Haven for the Wealthy/Politically Connected, a Prestigious Bank! Why else did President Biden step in to Guarantee All of the Deposits! If the FDIC or other Insurance didn’t cover a loss it shouldn’t have been.
Three of my college classmates went into banking through different venues. And when asked years later when asked, all 3 of them maintained there’s only two ways a U.S. bank can fail:
1. Sheer incompetence
2. Corruption (read: malfeasance — garden variety off-the-books “banking”/stealing/embezzling)
And if you really want a 3rd reason??
3. A combination of #1 and #2 …
Your Comments, as well as your 3 friends, are pretty much on the “money” with their content. What really shows the Incompetent Culture in our Government Agencies is the fact of how many pulled their money out prior to the collapse, bank executives. This, and the Regent Bank Failure, should have us all concerned about the Health and Stability of the banking industry. The Banks that shored up Regent have, and will continue, received money from the Government. Taxpayer’s Money, what President Biden said would not be used!
Roger that, my friend …
Amen!
Roger that, my friend …
The tone of the responses to this article is disappointing. They are reminiscent of an accident scene on the freeway with participants pointing the finger at who is to blame, when the immediate action should be triage for the injured. This is exactly what the government is doing by backing all depositors of the failed SVB. Otherwise the consequences for the economy will be far worse and infinitely more costly. And yes, I sympathize with all depositors whether they be rich or poor, politicians or business owners. The shareholders of the bank are the ones to suffer, and in my opinion rightly so because that is the inherent risk that investors undertake.
The FDIC’s job is to make sure this doesn’t happen. They did not do their job. This bailout is only happening because of the ties the current administration has with California. The lack of checks and balances this bank had is against the regulations…FDIC sat on this and now we are paying to bail out billionaires. This bank going down is not our responsibility. More money the government spends the less you will see.
Nope. It was the prior administration that voted and passed bill in 2018 to weaken Dodd-Frank regulations. Fact. Sorry.
Thank you.
Eldo, yes Dodd-Frank was weakened by the prior Administration, but what were the reasons behind it my friend? The 2008 Economic Collapse was actually, Factually, Directly Tied to Provisions contained within the Legislation. It was Originally a well meant measure but had enough loopholes to be exploited by Banks, Et Al. It would have been gutted by the Then Administration, however, Barney Frank and Chris Dodd were somehow still Hailed as Heroes for the Legislation. This is where we Hailed certain Banks as “Too Big to Fail,” what a mistake! The prior admin didn’t go far enough, but Yes did do something needed, my friend. We could debate this for Years on the merits of each! Reforms are Needed Quickly, No Bailouts.
One of the authors of Dodd-Frank, former Rep. Barney Frank stated that the rollback of the regulations had absolutely nothing to do with the failure of SVB. He said it was sheer incompetence. Besides that, it was also passed with bipartisan support.
The FDIC guaranteed up to $250,000 on some accounts and then the Rest of the Deposits were covered separately by the Government, All of those Funds Are Taxpayer Money! The Politically Connected and Wealthy Depositor’s were taken care of very quickly and entirely! Must be Nice.
Right
The financier was a major prior administration supporter. Put the blame where it belongs on the prior administration for cutting all kinds of regulations.
Sorry to hear that your view of Democracy in action to save the Wealthy and Politically Connected with Our Money is preferred. Any Account not covered by the FDIC should not have been rescued, they could have purchased private insurance to protect their assets. We have been lied to yet again!