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Browncoat40 t1_jclehkt wrote

Lol. There are enough other semi-reputable things to blame. Twitter, politicians, “woke” Silicon Valley businesses, hell even boogeymen like the woke mob or regulations. Remote work didn’t cause a short-term shortfall or a bank run

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marvelmon t1_jclfkj6 wrote

Of course. Had nothing to do with SVB not having a risk manager watching their investments.

148

NetDork t1_jcljwdg wrote

Am increase in employee productivity led to their downfall? Sure.

1

SuitableNegotiation5 t1_jcll2vo wrote

Dear SVB: G.F.Y.

Your own "business practices" and risky behavior caused this.

Stop trying to shift the blame, no one is buying it.

126

zwaaa t1_jclmr0k wrote

Are you sure it was remote work? Are you sure it wasn't greed?

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ManyFacedGodxxx t1_jclo1wx wrote

“Woke” Remote Work or “Un-Woke??” /s

I would gone with Red Algae or UFOs myself but sure, remote work, why not…

3

New_Stats t1_jclorou wrote

I went into my small, regional bank today to see if the bank was in any danger. They are not, they didn't invest in crypto or anything as risky as SVB invested in, because they aren't fucking mooks. They also have a thing called risk management, because they aren't insane.

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opiewhiskas t1_jclq9qp wrote

I would have blamed the green power ranger honestly…..that damn ocarina

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Xyrus2000 t1_jcls0ds wrote

Pretty sure it was the lack of Furbys.

1

beetus_gerulaitis t1_jclt2dm wrote

Any idiot knows SVB failed because Tom Brady left the Pats for the Bucs.

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ScottEATF t1_jcltikk wrote

SVB failed because of investment decisions that would have had to have been helmed by the absolute highest level of management.

That level of management would enjoy the ability to come and go as they please regardless of SVB's remote work policy.

Having employees in an office or not would not affect SVBs executives from adopting investment strategies that included covering short term deposits with long term investments without aggressive hedges against interest rate fluctuations.

They choose those instruments because that's where the highest return was at the time. They did not consider long term implications of that because they were concerned with short term profitability. Likely because their compensation and bonuses hinge on meeting profitability margins, not ensuring the future stability of the bank.

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AUWarEagle82 t1_jclv1h5 wrote

It's true! I work remotely and I never visited SVB to deposit any money! I didn't think they would catch on to me this quickly.

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olearyboy t1_jclxmam wrote

I thought it was the woke left? I just can’t keep up anymore

4

CC-5576-03 t1_jcly856 wrote

Replying to New_Stats (#2,255,955)

SVB didn't invest in crypto, they kept their customer deposits in bonds. The problem was that as interest rates increased their old bonds became worth less. If it hadn't been for the bank run they could have held the bonds to maturity and then they wouldn't have lost any money.

Also a bank will never tell you if they're in danger because they don't want to incite a bank run.

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SReynolds77 t1_jclzeth wrote

Make bad bond investments. Blame wfh. Classic

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TheManInTheShack t1_jcm1n3l wrote

Replying to CC-5576-03 (#2,256,485)

What most don’t seem to understand is that SVB had plenty of assets. They just didn’t have enough cash on hand and foolishly pre-announced a cash raise which caused the investor to pull out and then a run on the bank.

The reason the US Government is willing to guarantee all depositors is because they know they can find a buyer.

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hamhead t1_jcm2qkq wrote

Replying to ScottEATF (#2,256,226)

>SVB failed because of investment decisions that would have had to have been helmed by the absolute highest level of management.

They included executives and management being spread out as one of the problems...

−16

chemicalrefugee t1_jcm4tn2 wrote

Replying to marvelmon (#2,255,453)

And of course nothing to do with the deregulation of banks under Trump. Or the US obsession with pretending that Classical Economic Theory works. Nah, it has to be something that actually increases bank profitability (work from home) but which the power obsessed managers dislike because it puts employees out of their sight.

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GingerMcBeardface t1_jcm5j89 wrote

My credit union released a memo to the effect of "unlike some for profit banks that don't really care about you, we give a flying f=÷&%." I appreciated the dig.

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marvelmon t1_jcm6d3c wrote

Replying to chemicalrefugee (#2,256,829)

Deregulation had nothing to do with it. SVB made bets that the interest rates would remain low. When interest rates were being raise by the Feds, they didn't have a risk manager to adjust their investments.

And who is going to pay for the bailout? Regular people through ever increasing bank fees.

Inflation happened under Biden. Higher interest rates happened under Biden. This had nothing to do with Trump.

−61

44035 t1_jcm6muz wrote

I thought Critical Race Theory caused the crash.

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MytthewS t1_jcm6om5 wrote

No chance it was this guys fault: The executive team at SVB was spread out around the country, with CEO Greg Becker at times working from Hawaii,

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burnmenowz t1_jcm8h8w wrote

Can't take any responsibility can they?

So I guess remote workers forced them to make risky investments.

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ksigley t1_jcm8j2u wrote

EFF YOU SEE KAY EYE EHN GHE LOL

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Moccus t1_jcmai5t wrote

Replying to New_Stats (#2,255,955)

SVB wasn't invested in crypto. None of the banks that failed were invested in crypto. They were mostly heavily invested in US Treasury bonds, which in normal circumstances are one of the safest investments in the world.

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jointheredditarmy t1_jcmaumd wrote

Replying to AttractiveNuisance37 (#2,256,949)

So it’s been a while since school but I seem to remember it would not have. Treasuries are always considered risk free for capital calculation purposes. When rates go up 5 points in 9 months it’s anything but risk free. The thinking is that even if you have a duration mismatch, it will converge at some point, since the treasury will get paid back at some point, and that’s true until you have a bank run.

−19

acuet t1_jcme7x7 wrote

Welp, at least they didn’t blame violent videos games! /s

1

goinmobile2030 t1_jcmec97 wrote

Someone help me shut the Bullshit Detector off, please.

1

MrNothingmann t1_jcmg1as wrote

The poors are happy? That shits gotta stop. Let's blame literally everything wrong on the thing making them happy.

1

TheWhiteSchoolman t1_jcmgzpn wrote

Does this mean that for people who do work in the office their households going to fail due to their remote house work?

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trollsmurf t1_jcmj4yp wrote

"essential workers" = underpaid cleaning staff from Mexico?

1

Kind_Bullfrog_4073 t1_jcmqdxm wrote

Running out of things to blame it on. Have they blamed it on cracker jacks yet?

3

dastardly740 t1_jcmrwm1 wrote

Replying to TheManInTheShack (#2,256,664)

They also appeared to have a significant proportion of their deposits effectively controlled by one person where that individual telling all his portfolio companies to withdraw there deposits was enough to eat up the banks liquidity.

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Callinon t1_jcmtx5x wrote

Is it the remote work? Or is it the gays?

Make up your mind, guys.

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Upshot12 t1_jcmvxtr wrote

I can see the gaslight from here.

2

jsr116 t1_jcmx4fe wrote

I am so tired of the ridiculous corporate propaganda in the United States. Deregulation and risky financial investments without leaving enough working capital on hand was the reason for the failure, not remote work.

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SAM0070REDDIT t1_jcn1mp5 wrote

Replying to Callinon (#2,258,240)

It's like a stupid conservative adlib

It was the ______ fault

  1. Gays;
  2. Lack of guns;
  3. Electric cars; or
  4. Abortions

Despite all of this, the conservative men keep supporting the transgender community through monthly donations to their favourite femboy onlyfans account.

7

Jomgui t1_jcnbiq1 wrote

Yes, Jerry from HR reading CVs from home was the reason the higher ups failed to consider how the market works. DAMN YOU JERRY

3

ghigoli t1_jcndsic wrote

Replying to sanjsrik (#2,255,308)

FDIC should fucking seize all the c-suites money and just beat them with a bat in prison cells.

they fucked up but won't admit it. wtf is professionalism these days if everyone making millions is just a fucking toddler in a suit.

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hackingdreams t1_jcnik2d wrote

So far they've blamed (just off the top of my head): Black people, LGBT people, Women, Biden, and now remote work.

The actual factually known cause: a liquidity crisis caused by social media, enabled by the Republican repeal of banking regulations.

6

HRHGracktheGreat t1_jcnk5fi wrote

Priorities when assigning blame show where their real fears reside. They always new Uncle Sam Warbucks would come bail their asses out.

1

doelutufe t1_jcnmcuo wrote

Replying to MytthewS (#2,256,938)

See, thats the problem. The C-level didn't work from home, but from the beach. If everyone had done that, it would've been fine, but no, they just had to work from their own home.

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msur t1_jco44td wrote

"Former executives at SVB grasp at straws to deflect blame."

1

TreesForTheForest t1_jco6g5z wrote

Replying to jayfeather31 (#2,255,594)

I work at a much larger financial institution than SVB. Let me translate: our managers did a shitty job of managing risk. Because they were not competent enough to use telephones, zoom, email and instant messaging to connect effectively with others in the organization, they did not understand they were doing a shitty job until it was too late.

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D_Winds t1_jcof38b wrote

Be an adult and just blame the pandemic.

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JTuck333 t1_jcoham9 wrote

They bought too many low yield T bills because they thought inflation was “transitory”. Regulation would have just pushed them to buy more T bills and obviously has nothing to do with remote work.

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O1O1O1O1O t1_jcoje6v wrote

The criticisms of SVB's supposed wokeness and work-from-home culture, in the Financial Times, are odd because they appear completely unrelated to the decisions that brought the bank down. lt's a very odd piece.

2

BowzersMom t1_jcotgyj wrote

Replying to hamhead (#2,261,960)

Hun, they’re making up excuses. But it doesn’t matter because they’re all out of a job now! (Or will be when the fed finishes selling off all their assets and winding them down).

1

StillSundayDrunk t1_jcp2u80 wrote

Why would we listen to workplace/business advice from a failed business?

1

BeowulfsGhost t1_jcpga9i wrote

So it’s remote work or woke ideology? And not poor investment strategy, under capitalization, or mismanagement as seems totally evident from the circumstances?

Whatever, the bank leadership is desperately casting about for someone else to blame.

1

TheReapingFields t1_jcpi3dr wrote

Replying to ghigoli (#2,259,400)

Professionalism? Hell no. Look, I think its best someone explains the financial and banking sector to you, before you get entrenched in the idea there is any professional standard in play. There isn't.

It is a sector, just like investing is, for people who point blank refuse to work for their money, and will do anything as long as they can keep themselves from doing any work and making money while doing it. It exclusively attracts people who only sweat at all, if they are either at spin class, getting laid, or climbing more stairs than they planned for. Its for people with soft hands, weak backs and no guts.

If any of the people in the financial services sector were worth a shit, they'd have learned a trade, worked out how to use power tools and rulers, and be building houses, fixing plumbing, laying cable and doing carpentry, but instead, they joined the "I don't want to do anything useful, but I want you to pay me up the ass to do the useless shit I do" brigade. It shouldn't be a surprise that things collapse when the people in the industry are as they are. It should be a source of shock every time a day goes by WITHOUT a major collapse, because its more by luck than judgement.

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IcyContribution8432 t1_jcq1ff0 wrote

A bank run caused them to fail. The bank run was organized by Peter Thiel.

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oszlopkaktusz t1_jcr8se9 wrote

Replying to hackingdreams (#2,259,715)

> The actual factually known cause: a liquidity crisis caused by social media, enabled by the Republican repeal of banking regulations.

That's quite a bit simplistic and not even true. We are talking billions of dollars and a bank that didn't serve your average American.

1

TripleGarlic t1_jcrhsbb wrote

Haha. Never let a good crisis go to waste.

The devil works hard, but corporate America works harder.

1

politits t1_jcrld25 wrote

First they tried to blame diversity, then WFH… whatever straws conservatives can desperately grasp at to try to shift blame from the obvious actual culprit which is Trump & Republicans eliminating essential banking regulations.

1

SilasX t1_jcukocj wrote

Replying to New_Stats (#2,255,955)

SVB collapsed because of their long-term Treasury bonds, not their conventionally-risk investments like startups or crypto.

When is this misconception going to die?

1

magenta_placenta t1_jcybaah wrote

How about the SVB CEO lobbying to reduce risk regulations:

https://www.theguardian.com/business/2023/mar/11/silicon-valley-bank-weaken-risk-regulations-svb

Or SVB executives mass dumping their shares 2 weeks before collapse:

https://www.newsweek.com/silicon-valley-bank-ceo-sold-million-stock-before-collapse-1787062

Or SVB executives getting millions in bonuses hours before takeover:

https://www.cnbc.com/2023/03/11/silicon-valley-bank-employees-received-bonuses-hours-before-takeover.html

As always, the shit rolls downhill. Tired of this clown world yet?

But nah, it's definitely remote work's fault. Weak risk management is solved by c o l l a b o r a t i o n.

1

marvelmon t1_jczmja3 wrote

Replying to IcyContribution8432 (#2,282,746)

Yes that's it. I support attacking financial institutions in order to harm American businesses and investors.

I want to see banks make shitty investments so that I have to pay to bail them out. I can't think of a better use of my savings than the bailout out billionaires.

1