Former SVB Chief Blames Fed, Media Hype For Bank's Devastating Collapse

Greg Becker, the former CEO of SVB Financial Group, the parent company of Silicon Valley Bank, attributed the bank’s collapse to a combination of factors, including rapid rate hikes by the Federal Reserve and negative sentiment amplified by social media. 

This marks the first public statement by Becker since SVB was placed into receivership on March 10.

What Happened: In a written testimony for a U.S. Senate Banking Committee hearing, Becker emphasized the role of media comparisons between SVB and Silvergate Capital Corporation, which had announced its plans to wind down. 

"Silvergate's failure and the link to SVB caused rumors and misconceptions to spread quickly online, leading to the start of what would become an unprecedented bank run," Becker said, adding, "By the end of the day on March 9, $42 billion in deposits were withdrawn from SVB in 10 hours, or roughly $1 million every second."

See Also: Did The Simpsons Predict The Collapse Of Silicon Valley Bank? ‘What Do You Mean The Bank Is Out Of Money?’

Becker expressed his disbelief that such events could happen to SVB and defended the leadership team’s decisions based on available facts, forecasts, and expert advice. 

He acknowledged the personal and professional devastation caused by the takeover of SVB and apologized for the impact on employees, clients, and shareholders. 

The collapse of SVB had significant implications, triggering a series of bank failures and creating turmoil throughout the financial sector, including the seizure of Signature Bank and the collapse of First Republic Bank. 

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