Inadequate capital and unrestricted executive compensation took down SVB

The current banking crisis sparked by the recent implosion of Silicon Valley Bank (SVB) has several interrelated causes. To wit, inadequate bank equity capital, misguided capital structure of SVB’s client companies (high-tech high-growth ventures) and misaligned bank executive compensation.  Additionally, the risk from duration mismatch between SVB’s assets and liabilities was a major cause of its implosion. READ MORE