SVB's tech failings were a problem long before the bank run that led to its demise, critics say
Publishing timestamp: 2023-03-12 18:46:13
Summary
Silicon Valley Bank's recent meltdown was not only due to deteriorating business conditions and ill-timed investments, but also due to its outdated technology and poor treatment of some startup customers. Clients and former employees have criticized the bank's clunky user experience, slow fulfillment of requests, and refusal to upgrade its technology. The bank also fumbled its response to the Covid pandemic and mishandled the emergency payment protection program (PPP). The bank's lack of investment in technology made risk compliance difficult and caused some clients to switch to other banks. The FDIC seized SVB on Friday following a run on the bank by depositors, making it the second-biggest bank failure in U.S. history.
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Tickers: AMZN, SIVB, PACW, FRC,
Keywords: business news, svb financial group, energy, jeff bezos, pacwest bancorp, fintech, cryptocurrency, bitcoin, first republic bank, amazon.com inc, technology,
Source: https://www.cnbc.com/2023/03/12/former-svb-employee-offers-insight-into-the-banks-failings.html