Silicon Valley Bank was warned by BlackRock that risk controls were weak

Quick Summary

The consultation did not consider the deposit side of the bank, so did not delve into the possibility that SVB would be forced to sell assets quickly to meet outflows, several people confirmed.

The January 2022 risk control report gave the bank a “gentleman’s C”, finding that SVB lagged behind similar banks on 11 of 11 factors considered and was “substantially below” them on 10 out of 11, the people said.

The Financial Times previously reported that in 2018, under a new regime of financial leadership led by CFO Beck, SVB — which historically held its assets in securities maturing in under 12 months — shifted to debts maturing 10 years or later to bolster returns.

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News Analysis

Author / Journalist: Brooke Masters

Category: Business

Topics: Bank People Financial Portfolio Securities Rate Interest Time Risk Cent Bank’s

Source Website Secure: Yes (HTTPS)

Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

News Source URL: ft.com

Readership Location: United States

Published Date: 2023-03-18, 19:00:32

News Timezone: GMT +8:00

Language: English

Original Article Length: 861 words

Reading Duration: 5 minutes read

Compatibility: Desktop Web, Mobile Web, iOS App, Android App

News ID: 1016964

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About Publisher

Name: Financial Times

Main Topics: Business

Official Website: ft.com

Last Update: 9h ago

Headquarters: United States

Coverage Areas: United States

Publication Owner: Independent Company

Publication Timezone: GMT +8:00

Languages Covered: English

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API Available: Yes

Website Security: Secure (HTTPS)

Publisher ID: #150

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