Silicon Valley Bank (SVB) executive, Joseph Gentile, was a former Lehman Brothers Global Investment Bank executive prior to the bank’s public collapse in 2008.
Prior to joining SVB as Chief Administrative Officer, Gentile served as Chief Financial Officer at Lehman Brothers Global Investment Bank. Gentile left Lehman in 2007, just a year before it filed for bankruptcy in 2008.
“You can’t make it up.” The internet went berserk at the revelation, wrote one Twitterati.
“This is really unusual” added another user.
“It’s all starting to make sense now!” wrote another.
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before Federal Deposit Insurance Corporation (FDIC) seizing control of SVB, the bank revealed mounting losses, and shares plunged more than 60% before being put on hold. The bank was in the midst of a liquidity crisis after announcing plans for a $1.25 billion stock sale with low interest.
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According to the FDIC, SVB was among the top 20 US commercial banks with total assets of $209 billion at the end of 2022.
It is the second largest bank to close in the US since 2008. The global investment bank of Lehman Brothers was also affected in the 2008 financial meltdown.
at the time of its fall, lyman It was the fourth largest investment bank in the United States with 25,000 employees worldwide. It had $639 billion in assets and $613 billion in liabilities.
Investor and “Shark Tank” Star Kevin O’Leary Blaming the collapse on poor management, SVB reacted to the collapse on “Your World with Neil Cavuto”.
“Banks blow themselves up all the time because of weak management or management mistakes. It happens.” O’Leary said. “So you need diversification, and not just in terms of portfolio assets. You need institutional diversification.”