Silicon Valley Bank CEO Greg Becker is being sued by shareholders for fraud.

(AFP)

[Financial Channel/Comprehensive Report] Since Silicon Valley Bank (SVB), the 16th largest bank in the United States, collapsed without warning, its former CEO Greg Becker, former chief financial officer Daniel Beck and parent company SVB Financial Group have all been sued by shareholders for fraud.

As rising interest rates caused market chaos, Silicon Valley Bank's major customers withdrew deposits to maintain operations. Silicon Valley Bank found itself short of funds and was forced to sell bonds at a loss in search of financing, resulting in an after-tax investment loss of as much as $1.8 billion (New NT$54.9 billion).

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Shareholders of Silicon Valley Bank believe that the chief executive and chief financial officer are suspected of fraud and suspect that they concealed the impact of rising interest rates on the banking sector. Therefore, they filed a class action lawsuit against them in federal court in San Jose, California, demanding that Silicon Valley Bank compensate investors 2021 Losses between June 16, 2023 and March 10, 2023.

Silicon Valley Bank said on Monday (13th) that it will work hard to explore other alternatives. At present, they have lost the main business of the bank.

U.S. regulators declared the bank in receivership on March 10 after a run on the Silicon Valley bank broke out.

Silicon Valley Bank had an estimated $209 billion (NT$6.3 trillion) in assets and $175.4 billion (NT$5.3 trillion) in deposits before its collapse, the largest U.S. bank failure since the 2008 financial crisis.

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