https://www.cnn.com/2023/03/13/business/svb-employees-angry-at-ceo/index.html CNN values your feedback 1. How relevant is this ad to you? ( ) ( ) ( ) ( ) ( ) 2. Did you encounter any technical issues? [ ] Video player was slow to load content [ ] Video content never loaded [ ] Ad froze or did not finish loading [ ] Video content did not start after ad [ ] Audio on ad was too loud [ ] Other issues [ ] Ad never loaded [ ] Ad prevented/slowed the page from loading [ ] Content moved around while ad loaded [ ] Ad was repetitive to ads I've seen previously [ ] Other issues [ ] [ ] [ ] [ ] [ ] [ ] Cancel Submit Thank You! Your effort and contribution in providing this feedback is much appreciated. Close Ad Feedback Markets Tech Media Success Perspectives Videos More Markets Tech Media Success Perspectives Videos Audio Live TV Log In My Account * Settings * Log Out Your CNN account Log in to your CNN account [ ] Search Log In My Account * Settings * Log Out Your CNN account Log in to your CNN account --------------------------------------------------------------------- Live TV Audio --------------------------------------------------------------------- Edition US International Arabic Espanol Edition * US * International * Arabic * Espanol --------------------------------------------------------------------- Markets Tech Media Success Perspectives Videos Follow CNN Business * * * --------------------------------------------------------------------- * US + Crime + Justice + Energy + Environment + Extreme Weather + Space + Science * World + Africa + Americas + Asia + Australia + China + Europe + India + Middle East + United Kingdom * Politics + SCOTUS + Congress + Facts First + 2020 Election * Business + Tech + Media + Success + Perspectives + Video * Markets + Pre-markets + After-Hours + Market Movers + Fear & Greed + World Markets + Investing + Markets Now + Before the Bell + Nightcap * Opinion + Political Op-Eds + Social Commentary * Health + Life, But Better + Fitness + Food + Sleep + Mindfulness + Relationships * Entertainment + Movies + Television + Celebrity * Tech + Innovate + Gadget + Foreseeable Future + Mission: Ahead + Upstarts + Work Transformed + Innovative Cities * Style + Arts + Design + Fashion + Architecture + Luxury + Beauty + Video * Travel + Destinations + Food & Drink + Stay + Videos * Sports + Pro Football + College Football + Basketball + Baseball + Soccer + Olympics + Hockey * Videos + Live TV + Digital Studios + CNN Films + HLN + TV Schedule + TV Shows A-Z + CNNVR * CNN Underscored + Electronics + Fashion + Beauty + Health & Fitness + Home + Reviews + Deals + Money + Gifts + Travel + Outdoors + Pets + CNN Store * Coupons * More + Photos + Longform + Investigations + CNN Profiles + CNN Leadership + CNN Newsletters + Work for CNN Markets DOW S&P 500 NASDAQ Fear & Greed Index ----- is driving the US market Latest Market News Wall Street pummels regional banks, despite Biden's assurances Is my money safe? How secure is the banking system? Your Silicon Valley Bank fallout questions, answered 'Absolutely idiotic'. SVB insider says employees are angry with CEO Something isn't loading properly. Please check back later. 'Absolutely idiotic'. SVB insider says employees are angry with CEO Matt Egan By Matt Egan Published 3:45 PM EDT, Mon March 13, 2023 Link Copied! US President Joe Biden speaks about the US banking system on March 13, 2023 in the Roosevelt Room of the WHite House in Washington, DC. - Biden tried to reassure the world of the resilience of the US banking system as US and European authorities scrambled to prevent any contagion from the abrupt failure of Silicon Valley Bank (SVB). US federal authorities stepped in to ensure depositors still had access to their funds at SVB and regulators took over a second troubled lender. Video Ad Feedback Biden outlines consequences for SVB and Signature Bank executives 04:13 - Source: CNN Top business news 16 videos US President Joe Biden speaks about the US banking system on March 13, 2023 in the Roosevelt Room of the WHite House in Washington, DC. - Biden tried to reassure the world of the resilience of the US banking system as US and European authorities scrambled to prevent any contagion from the abrupt failure of Silicon Valley Bank (SVB). US federal authorities stepped in to ensure depositors still had access to their funds at SVB and regulators took over a second troubled lender. Video Ad Feedback Biden outlines consequences for SVB and Signature Bank executives 04:13 Now playing - Source: CNN dave ricks eli lilly ceo cnntm thumb vpx Video Ad Feedback CEO of pharma giant on why the company is cutting cost of insulin 02:46 Now playing - Source: CNN Kevin Roose NYT tech journalist Video Ad Feedback Journalist says he had a creepy encounter with new tech that left him unable to sleep 03:28 Now playing - Source: CNN kevin o'leary ctm iso 2 15 23 Video Ad Feedback 'Shark Tank' star defends controversial tweet: 'Get over it' 01:20 Now playing - Source: CNN Neil deGrasse Tyson Burnett vpx Video Ad Feedback Neil deGrasse Tyson lets the air out of balloon hype 01:40 Now playing - Source: CNN Jon Sarlin Amanda Steen 1 Video Ad Feedback CNN tried an AI flirt app. It was shockingly pervy 03:19 Now playing - Source: CNN Business aoc twitter hearing Video Ad Feedback These two moments show how Twitter's choices helped former President Trump 01:55 Now playing - Source: CNN Business m&m thumb Video Ad Feedback M&M's Super Bowl ad put an end to the 'spokescandies' saga. Here's why 01:40 Now playing - Source: CNN Business anika navaroli lead pkg vpx Video Ad Feedback Twitter whistleblower: Jan. 6 committee failed to hold Twitter accountable 04:03 Now playing - Source: CNN Taylor Swift ticketmaster Video Ad Feedback 'I am the problem. It's me': Senators quote Taylor Swift during Ticketmaster hearing 02:04 Now playing - Source: CNN Business raising chickens backyard vpx Video Ad Feedback Egg prices rose 60 percent in a year. See how some are trying to cut costs 02:49 Now playing - Source: CNN Janet Yellen Video Ad Feedback Hear Janet Yellen's warning if debt ceiling agreement is not reached 02:54 Now playing - Source: CNN frankensons thumb Video Ad Feedback How a food review TikTok saved a struggling restaurant 02:22 Now playing - Source: CNN Business Senior mature business woman holding paper bill using calculator, old lady managing account finance, calculating money budget tax, planning banking loan debt pension payment sit at home kitchen table. Video Ad Feedback How the debt ceiling changes may impact you 01:35 Now playing - Source: CNN screengrab invisible house Video Ad Feedback See inside $18 million 'Invisible House' 00:50 Now playing - Source: CNN Business sieges avion banniere Video Ad Feedback Heathrow CEO says wealthy 'should pay' aviation transition to greener fuels 01:59 Now playing - Source: CNN Business See More Videos New York CNN -- The blame game is on for who caused Silicon Valley Bank's collapse, and the tech sector is pointing the finger at SVB CEO Greg Becker for allowing his company to go down in history as the second-biggest US banking failure on record. One Silicon Valley Bank employee, who requested anonymity to speak candidly, was dumbfounded by how Becker publicly acknowledged the extent of the bank's financial troubles before privately lining up the necessary financial support to ride out the storm. This set the stage for the panic that ensued as customers scrambled to pull their money. "That was absolutely idiotic," the employee, who works on the asset management side of Silicon Valley Bank, told CNN in an interview. "They were being very transparent. It's the exact opposite of what you'd normally see in a scandal. But their transparency and forthright-ness did them in." Greg Becker, chief executive officer of Silicon Valley Bank, participates in a panel discussion during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Tuesday, May 3, 2022. Greg Becker, chief executive officer of Silicon Valley Bank, participates in a panel discussion during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Tuesday, May 3, 2022. Lauren Justice/Bloomberg/Getty Images Becker and his leadership team revealed last Wednesday night a hope (but no firm commitment) to raise $2.25 billion in capital as well as $21 billion in asset sales that sparked a $1.8 billion loss. That news set off a wave of fear across Silicon Valley, where the bank serves as a key lender to tech startups. Many of them panicked, yanking $42 billion last Thursday alone when Silicon Valley Bank's stock crashed by 60%, according to filings by California regulators. By the close of business that day, Silicon Valley Bank had a negative cash balance of about $958 million. Silicon Valley Bank headquarters in Santa Clara, California, US, on Thursday, March 9, 2023. SVB Financial Group bonds are plunging alongside its shares after the company moved to shore up capital after losses on its securities portfolio and a slowdown in funding. Silicon Valley Bank headquarters in Santa Clara, California, US, on Thursday, March 9, 2023. SVB Financial Group bonds are plunging alongside its shares after the company moved to shore up capital after losses on its securities portfolio and a slowdown in funding. David Paul Morris/Bloomberg/Getty Images SVB employees received bonuses hours before bank shutdown, reports say "People are just shocked at how stupid the CEO is," the Silicon Valley Bank insider said. "You're in business for 40 years and you are telling me you can't raise $2 billion privately? Get on a jet and fly to Kuwait like everyone else and give them control of one-third of the bank." Silicon Valley Bank did not respond to requests for comment but Becker has reportedly apologized to employees about the situation. "It's with an incredibly heavy heart that I'm here to deliver this message," Becker said in a video message to staff on Friday, according to Reuters. "I can't imagine what was going through your head and wondering, you know, about your job, your future." 'Widespread hysteria' Jeff Sonnenfeld, CEO of the Yale School of Management's Chief Executive Leadership Institute (CELI), told CNN he agrees that Silicon Valley Bank's leadership deserves criticism for their "tone-deaf, botched execution." "Someone lit a match and the bank yelled, 'Fire!' - pulling the alarms in earnest out of genuine concern for transparency and honesty," Sonnenfeld and Steven Tian, CELI's research director, said in an email on Sunday to CNN. Sonnenfeld and Tian said not only was the announcement of an unsubscribed $2.25 billion capital raise Wednesday night "unnecessary" because Silicon Valley Bank had sufficient capital far in excess of regulatory requirements, but there was no need to simultaneously reveal the $1.8 billion loss. The one-two punch "understandably sparked widespread hysteria amidst a rush to pull deposits," the two wrote, adding that they could have spaced the announcements out by a week or two and reduced the magnitude. After his administration announced a swooping rescue of Silicon Valley Bank depositors on Sunday, President Joe Biden signaled US officials will be closely scrutinizing all parties involved in the bank's collapse. "I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again," Biden said in a statement. The role of the Fed For their part, Sonnenfeld and Tian argue Jerome Powell, Biden's pick to lead the Federal Reserve, and his colleagues deserve at least some of the blame. "There should be no mistaking that Silicon Valley Bank's collapse was a direct result of the Fed's persistent and excessive interest rate hikes," they wrote. Why? Because the Fed's war on inflation depressed both the value of the bonds Silicon Valley Bank was relying on for capital and the value of the tech startups the bank catered to. Of course, Silicon Valley Bank had more than a year to prepare for both of those issues. The Silicon Valley Bank insider said the mismanagement of the bank's balance sheet heading into last week was "stupidity" and questioned the strategy of the CEO and CFO. Still, the employee, who is a Wall Street veteran, emphasized his belief that the downfall of Silicon Valley Bank was brought on by errors and "naivety," not outright wrongdoing. "The saddest thing is that this place is Boy Scouts," he said. "They made mistakes, but these are not bad people." Related Ad Feedback More from CNN Business [230313122707-london-stock-exchange-] Hollie Adams/Bloomberg/Getty Images Europe's banking stocks suffer biggest drop in a year Mar 13, 2023 [230313110859-02-sbv-silicon-valley-] David Paul Morris/Bloomberg/Getty Images The tech industry avoided an 'extinction-level event,' but it's not unscathed Mar 13, 2023 Ad Feedback CNN Business Videos [230313163251-exp-svb-tech-ceo-ashle] *Video Tech CEO: 'Worst hours of my life' after SVB collapse Mar 13, 2023 [230313140840-exp-marketplace-asia-b] *Video Chinese companies are hiring AI-employees Mar 13, 2023 [230313130109-01-svb-silicon-valley-] *Video Kori Suzuki/Reuters What is a bank run? Mar 13, 2023 [230313124845-jessica-alba] *Video CNN Wallace asks 'Honest' founder about brand's 'greenwashing' controversy. See her response Mar 13, 2023 Ad Feedback Ad Feedback [ ] Search Log In My Account * Settings * Log Out Your CNN account Log in to your CNN account --------------------------------------------------------------------- Live TV Audio --------------------------------------------------------------------- * US + Crime + Justice + Energy + Environment + Extreme Weather + Space + Science * World + Africa + Americas + Asia + Australia + China + Europe + India + Middle East + United Kingdom * Politics + The Biden Presidency + Facts First + US Elections * Business + Tech + Media + Success + Perspectives + Videos * Markets + Pre-markets + After-Hours + Market Movers + Fear & Greed + World Markets + Investing + Markets Now + Before the Bell + Nightcap * Opinion + Political Op-Eds + Social Commentary * Health + Life, But Better + Fitness + Food + Sleep + Mindfulness + Relationships * Entertainment + Movies + Television + Celebrity * Tech + Innovate + Gadget + Foreseeable Future + Mission: Ahead + Upstarts + Work Transformed + Innovative Cities * Style + Arts + Design + Fashion + Architecture + Luxury + Beauty + Video * Travel + Destinations + Food & Drink + Stay + News + Videos * Sports + Pro Football + College Football + Basketball + Baseball + Soccer + Olympics + Hockey * Videos + Live TV + Digital Studios + CNN Films + HLN + TV Schedule + TV Shows A-Z + CNNVR * Audio * CNN Underscored + Electronics + Fashion + Beauty + Health & Fitness + Home + Reviews + Deals + Money + Gifts + Travel + Outdoors + Pets + CNN Store * Coupons * Weather + Climate + Storm Tracker + Wildfire Tracker + Video * More + Photos + Longform + Investigations + CNN Profiles + CNN Leadership + CNN Newsletters + Work for CNN --------------------------------------------------------------------- Audio Live TV Follow CNN Business * * * * Log In My Account * Settings * Log Out Your CNN account Log in to your CNN account --------------------------------------------------------------------- Most stock quote data provided by BATS. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. All times are ET. Factset: FactSet Research Systems Inc. All rights reserved. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Fair value provided by IndexArb.com. Market holidays and trading hours provided by Copp Clark Limited. Terms of Use Privacy Policy Ad Choices Accessibility & CC About Newsletters Transcripts (c) 2023 Cable News Network. A Warner Bros. Discovery Company. All Rights Reserved. CNN Sans (tm) & (c) 2016 Cable News Network.