Alison Greenberg, CEO of Ruth Health, describes to CNN's Erin Burnett what it was like to urgently withdraw money from Silicon Valley Bank before it collapsed.
#CNN #News
CEO describes pulling money from bank hours before collapse
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It’s funny how we blame depositors for wanting their own money. 😂
But the banks only insure up to $250k anyways. Federally. Blah
SVB is an oddly structured bank. They were poorly diversified on both sides of the balance sheet.
Nice how the CEOS can always get their money out just in time but when the people came out to get their money they had the cops called on them.
@Vladimir The Invincible. wrong that’s the republican thing for a fact
@Diana D I said it “feels like it”. We all know that nothing illegal was done AND it wasn’t unfair. She got advanced warning from her investment agent.
Sooooo sad 😭
@Garrett Huggins Exactly.
The CEO of this bank should have all his assets frozen until an investigation is made.
that’s insider trading she just admitted to and isn’t that a felony SHE SHOULD BE IN JAIL why didn’t she inform other workers why didn’t she inform high end clients why didn’t she inform the media prior to the crash I’m pretty sure we need to start having more/stricter laws against corrupt ceo’s, politicians, celebrities LIKE ALEC BALDWIN, and law personal LIKE corrupt judges/lawyers/cops
Empty words
This is why I use shoe boxes for my bank lol
Absolutely, couldn’t agree more, the Board of Director’s assets should also be frozen.
Well if the CEO tells depositors to remain calm the least he could to is use his own money to shore up their accounts.
3 million isn’t going to go very far to support 170B in deposits, and an orchestrated withdrawal of 25% of that.
@Tim Gerk No it will not, but you know what stands up to manic fear? A proponent of hope, in this case $3.6m is meaningless objectively *but* it would go a looong way when customers can see that he saw the writing on the wall was grim and *still* trusted the institution he’s running to weather it.
That would be nice.
He was telling YOU to be calm when he was getting all of his and his friends money out.
It’s reasonable to tell depositors to remain calm. Remember, fractional reserve banking means the whole system collapses if people suddenly want their money at once, which the bank doesn’t have anyway.😅😅
And, this is why I switched over to a community-owned credit union. Pays the same as the banks, invests well and I get a cheque every year, for a share of the profits, since it’s community-owned. Been with them for 15 years. Absolutely no regret!
@Deana Kalberg credit unions don’t funnel money to executives and investors. everything is kept local, profits are re-invested into the bank and distributed to members through lower fees and better rates on products. by the very nature of the structure of a credit union, they are less likely to go insolvent. and they don’t dabble in sub prime auto loans like ally bank, bank of america, capital one, and others do
@D you’re the winner. You seem to be the only that understands the situation.
@Lexi Smith I have cds at CUs that paid up to 2.70%. If rates stick to 5-6%, I’m sure the cd rates will go up eventually, but rates are going to come down pretty soon again, because Powell was literally trying to break the economy. I was at a CU that survived the 08/09 crisis and I called them, but they only write mortgages to people with jobs, so that’s usually where banks go wrong the most, though CC and car loans could come in bad, though I don’t think the CUs absorb all CC losses.
Sounds good, I’m going to check it out! Thank you.
If any of us plebs acted on inside information like that, wouldn’t we be charged for insider trading?
1) It’s not insider trading, bc it’s not a stock trade. It’s cash money in an account, they withdrew it & put it in another bank.
2) The investor who alerted her might be in trouble, though.
The email was “cryptic”. She is describing transfer activities that were mean to skirt the AML regulation. Those withdrawals should have triggered suspicious activity alerts. Somehow, Peter Thiel and other ‘investors’ were calling their portfolios to abandon ship on SVB. This stinks to high heaven.
@taylor 915
She was worried about the bank’s own AI flagging and limiting her withdrawals. This has nothing to do with insider trading or SEC violations
Stinky for sure!
It’s not illegal to pull your own funds out of a bank lmao
@Medic311 haha for real. how could you get flagged for potential money laundering for trying to withraw legitimate funds from your own bank?
FDIC, has 20 years to pay off I believe. The whole point of the Federal Reserve was to prevent runs on banks like every 10 years that used to happen before that. Banks have to be careful what they invest in. Companies should consider using more than 1 bank in case this happens.
Banks should be hold accountable,and ALWAYS should be forced to return peoples money. It is crazy that CEO’s sometimes even get rich over losing other people’s life savings. It is just plain robbery.
Banks only federally insured up to $250k
@Hans well said. Also SVB appears poorly positioned and acted more like an investment bank on the loan side and a commercial bank on the deposit side. They loaned mostly to a single customer base. Their assets were not diversified. The comparison to S&L is much better than Lehman. But SVB waited too long, performed poor risk analysis and betrayed by beneficiaries of the being the their lender of last resort. Further, the lack of discipline within the hi tech world needs to come back reality.
Yeah where they gonna get the money from?
No one is ever held accountable for anything anymore.
The CEO of the SVB lobbied the government to ease regulatory controls and, in 2018, Trump obliged.
@FRINGE MINORITY yes… us peasants pay taxes to fix mistakes but not all mistakes were causes by the peasants all the time…
U can change that, but the public is scared to implement the 2nd amendment!
Love how she skirted the question and plugged her company instead.
Just amazing how these company owners have all this insight, yet the little folks bear the greatest brunt.
Right?
She’s clearly apart of the problem.
“skirted”
@flipnotrab fact
@Justin loll yup your money is insured, you will receive your full money in small payments for the next 16 months
No, she answered the question fairly directly: an investor in her company warned her to take her money out of the bank. There’s nothing illegal about what she did.
This reminds me of 2008. We were invested with Merrill Lynch, Bank of America and AIG. Long story short. The financial advisers we talked to at these companies had no idea what was coming down on us. I had to explain to them what a “SWAP” is. ML got caught by abuses of speculators in their London office. It went down fast. This feels similar.
So what do you do now?
@Anthony Ward We got very lucky. Bank of America rescued Merrill Lynch on Government orders. AIG got rescued by the tax payers. Luck is a very important strategy lol.
It is 2008 all over again. It doesn’t end here
It never ceases to amaze me how banks have zero accountability. It’s a masterpiece!
@2Chimps1Dart thsnk you. Do you believe in this case that California state regulators did not impose the same requirements to protect against failure as the Federal Reserve would have? As the 16th largest bank, wouldn’t it have been under the “too big to fail” rules?
@JordantheDOGE crypto is also trash. One scam to another.
I don’t have pity for the CEOs startups and institutional investors that may have lost money, my heart goes out to inexperienced investors selling off manipulated by the Fed. Don’t also keep money in the bank, your cash will lose massively on the sidelines.
@Cbot the irony that you are the one who actually bears bot in their name is laughable.
@Cbot I already know not to consult with these finance youtubers most of them are not licensed professionals misleading a community of investors in the case of the ftx scandal. The lady referred above is experienced and looks great, the sense of cost is what I am yet to determine. I can’t wait to hear from her
Well said!
The CEOs startups have businesses that employ hundreds of thousands of people if not millions.
well im glad her and audry were able to get ahead of the news and their customers and get their money out safely — I was really worried for them!!!!!!!!
My grandparents lost their entire savings during the depression due to banks failing. Guess history really does repeat itself
@EM Uhill can you give me a brief explanation of that repeal..please
Yep and it’s just starting to see it really happening again
This woman is the CEO of a firm, receive a urgent e mail from one of her investor, and waited more than 24 hours to get the money out? No wonder many of this start up goes belly up. She should step down.
The banks Clear the Books periodically to regain possession of properties. How do you do that? Tighten up your lending policies then small business can’t get the loans they need. Bigger businesses tighten their spending and start laying people off. Home Loans can’t be paid and the next thing you know all of that Equity the Family that happily lived in the home for 10 – 15 years built up now belongs to the bank. I’m sure in some situations the housing prices went up so much over the loan value that the banks actually made money on the foreclosure because the value of the house went up so much in 15 years the Equity paid off the loan and the bank didn’t lose money, they made even more!
I love how she’s explaining a total scam in a way that we’re just supposed to understand that this is just what happens
It’s a harrowing story of a ceo receiving inside information and then giving that inside information to family and friends before securing all their money which helps in leading to a catastrophe….I might tell this story at the dinner table over the holidays
Congratulations to this CEO for contributing to a possible bank run. Pretty sure she’ll be OK. Will we?