On Friday, Silicon Valley Bank rocked the financial industry with its sudden collapse, marking the second-largest banking failure in U.S. history.
Economic Collapse: Depositors Conduct RUN On Silicon Valley Bank—2008 All Over Again?
With SVB's collapse, many Americans wonder if we're on the verge of a 2008-style financial crisis.
In a way, 2008 has already repeated itself.
By that, I'm referring to the players involved in the collapsed financial institutions.
The Lehman Brothers' bankruptcy filing was a focal point of the 2008 crisis.
Should it surprise anyone that a former Lehman Brothers executive worked for Silicon Valley Bank at the time of its collapse?
SVB executive Joseph Gentile was previously the Chief Financial Officer (CFO) of Lehman Brothers' Global Investment Bank prior to its 2008 collapse.
Lessons never learned Silicon Valley Bank exec was Lehman Brothers CFO prior to 2008 collapse | Fox Business https://t.co/WV75PyGHiU
— Christine (@ChristineEliaz) March 12, 2023
This is truly unusual.
Meet Joseph Gentile.
He was the Chief Administrative Officer at Silicon Valley Bank.
Prior to joining the firm in 2007, he served as the CFO for Lehman Brothers’ Global Investment Bank.
This is him: pic.twitter.com/KcVbJVlkkt
— unusual_whales (@unusual_whales) March 11, 2023
Fox Business reported:
Prior to joining SVB as Chief Administrative Officer, Gentile worked as Chief Financial Officer at Lehman Brothers' Global Investment Bank. Gentile left Lehman in 2007, just one year before it went bankrupt in 2008.
"You can't make this up." one Twitter wrote as the internet erupted at the revelation.
"This is truly unusual" another user added.
"It's all starting to make sense now!" another wrote.
Prior to the Federal Deposit Insurance Corporation (FDIC) seizing control of SVB, the bank disclosed mounting losses, and shares plummeted more than 60% before being halted. The bank was in the middle of a liquidity crisis after announcing plans for a $1.25 billion stock sale with little interest.
According to the FDIC, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of 2022.
This is the second-largest bank to close in the U.S. since 2008. Lehman Brothers' Global Investment Bank was also impacted in the 2008 financial meltdown.
Financial experts fear SVB's collapse will trigger the implosion of other banks.
Signature Bank collapsed over the weekend.
As a result, many fear today will be a black Monday.
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