It has everything to do with the way Becker speaks and uses the word “regret,” Postma thinks. “He sounds a bit like ‘I’m sorry about the fuss,’ and he mostly blames it on external factors,” Postma says.
“Sounds a bit like ‘sorry about the fuss'”
In particular, the comparison between Silicon Valley Bank and the crypto bank Silver Gate was, according to Becker, responsible for the collapse of SVB. But US senators are less than impressed with Becker’s defense. Postma: ‘The word mismanagement comes up regularly and they point out that the SVB itself has taken risks. The CEO himself was responsible for it.’ Especially since SVB’s policy aimed to pay more bonuses with more income, which flowed into higher risks.
Implications
This committee will not have direct consequences for the former top executives of the SVB, Postma believes, because these hearings in the Senate are primarily intended to gather additional information. However, this information can later be used to initiate criminal proceedings. “It will be interesting, because President Biden wants more opportunities to be able to take a tougher approach with CEOs and other bank directors in case of mismanagement,” Postma says.
For this, for example, Biden is trying to withdraw bonuses. At Silicon Valley Bank – just before the bank collapsed – annual bonuses were simply paid out. But, Postma underlines, for the moment it remains a desire of Biden. First, the hearing must lead to new legislation, which must also be passed by Congress.
Come on
According to Postma, there seems to be enthusiasm in the US parliament, ‘because there’s really anger towards these banks and these CEOs,’ he continues. “But it remains to be seen whether these rules will actually go into effect and how long it will take.”