Comments by "L BA" (@lambertois11) on "How SVB's Historic Collapse Happened" video.

  1. Let’s talk about a subject that is rarely discussed: the system of bonuses for the bank management, especially for the investment banking. The bank bonus system is based on the profits at the end of the year. The managers are totally focussed on the short term. They become risk near-sighted; they do not care about the medium-term risk! The best example to illustrate this case is the CEO of the defunct Layman Brothers. In the years prior to the collapse of Layman Brothers, the CEO has amassed 500 million in salary and bonus. He could care less about the future of Layman Brothers.
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  2. New information is coming out of the fog concerning the SVB bank run. The bank run did not start in March 2023. The bank run was initiated in October 2022, when the Chinese investors started to windward their money (after the CCP 20th party congress). By the way, did you know that the Silicon Valley Bank opened a Chinese branch in 2007 ?
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