SVB collapse: Peter Thiel’s role scrutinized as spark of bank run
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Tech mogul and Republican marketing campaign donor Peter Thiel is being accused of sparking the run on the financial institution that compelled regulators to shut down Silicon Valley Financial institution.
Journalists and critics have turned their give attention to Thiel within the wake of SVB’s collapse, accusing him of influencing companies to withdraw their funding from the financial institution. His efforts are considered the primary that finally sparked the financial institution run, resulting in California regulators intervening.
“To be clear, SVB did not properly hedge its risks against two threats, 1) concentration of influence by Peter Thiel, 2) rising interest rates,” tweeted investigative journalist Dave Troy. “That was mismanagement, but it still wasn’t fraud, and they still have sufficient assets to meet nearly all of the bank’s obligations.”
SVB COLLAPSE: HERE’S EVERYTHING YOU NEED TO KNOW
“There should be more scrutiny of Peter Thiel and Bill Ackman for yelling fire in a crowded theater in this SVB collapse,” tweeted CNBC host Sara Eisen.
Others turned their focus to Thiel’s promotion and subsequent profiting off of crypto investments after the market crashed as a purpose to be suspicious of his withdrawals. “You mean the guy who was touting crypto and trashing critics while he was selling crypto? That guy? Shocker!” tweeted tech journalist Kara Swisher.
Thiel’s enterprise capital agency Founders Fund had pulled all of its funding from SVB as of Thursday morning, in line with Bloomberg. The corporate additionally suggested its portfolio firms to withdraw their cash from the financial institution, saying there was no draw back to shifting their cash out of the financial institution. The timing has led some to conclude that the investor’s actions could have led to mass withdrawals.
Founders Fund additionally hosted a capital name on Thursday, which enterprise capital corporations do to ask traders to ship them cash to make funding startups. Founders Fund requested portfolio firms to start shifting funding to SVB. When Fo
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