New Delhi: America’s big bank Silicon Valley has gone bankrupt. Bank of America is drowned, but the discussion is happening all over the world. The bank about which most people did not even know till a week ago, today there is a hue and cry about it. The closure of this bank has not only worsened the condition of America’s banking sector, but the danger of recession is looming all over the world. The condition of this big bank has become such that the regulator had to shut it down. This storm in the American banking sector is bound to affect India as well. In such a situation, it is also necessary to know about the person who was in charge of this bank.
Greg Baker’s troubles increased
The pain of the sinking of Silicon Valley Bank had not yet subsided and the CEO of the company, Greg Becker, got another big blow. The company’s shareholders have filed a lawsuit against SVB Financial Group, the parent of Silicon Valley Bank, and its CEO, Greg Baker. He has been accused of defrauding the shareholders. He is accused of concealing information that Greg sold $3.6 million in stock just before the bank went bankrupt. Greg Baker is facing allegations that his bank was locked down because of his bad decisions and his mistake.
Who is responsible for the bankruptcy of the bank?
The US tech sector has blamed Greg Baker, the CEO of Silicon Valley Bank, for the bank’s bankruptcy. According to the report of CNN, the loss was due to the mistake of the CEO. The CEO has found it difficult to highlight the financial problems of the lender. Everyone was upset and surprised to know the condition of the bank. An employee working in the asset management of the bank said the CEO’s move was unwise. The bank was locked due to the mistake of the CEO. The bank’s position was shaken as the CEO maintained transparency and clarity. As soon as the CEO announced fundraising of $ 2.25 billion in capital and $ 21 billion in asset sales. After this announcement, tech startups withdrew $ 42 billion from the bank within 24 hours. After this, the bank had a negative cash balance of $985 million. Jeff Sonnenfeld of the Yale School of Management’s Chief Executive Leadership Institute criticized Greg Baker’s leadership. At the same time, according to market experts, the Federal Reserve is also responsible.
Baker had given assurance in 24 hours, then what happened?
In 1993, Greg Baker took over the command of SVB. CVB Bank was previously run by Baker during the dotcom bubble. In 2011, he was made the CEO of CVB Financial Group. Regarding the Silicon Valley crisis, he said 24 hours ago that everything is fine. People’s money is safe, but after 24 hours the situation completely reversed. In January too, Baker had assured that the condition of the bank was fine and people need not panic. Now he is being accused of hiding information. Not only the customers and investors, but the bank’s employees are also angry with Greg’s decisions.
Who is Greg Baker
Greg was born in 1971 in America. He earned his graduate degree from Indiana University. Talking about Greg’s career, in the year 1993, he joined CVB Bank as a banker. He was appointed COO in May 1993. In 2008, he was made the president of Silicon Valley Bank and Silicon Financial Group. In 2011, he was appointed as the CEO of Silicon Valley Bank and SVB. Baker is fond of cycling, and reading books. If we look at the net worth, then according to February 27, 2023, Greg Baker’s net worth is $ 382 million. In 19 years, Baker has sold $25,356,607 worth of SIVBP shares. While he still holds 12,451 shares, which is worth about $2,118,961. As President, Baker earns $10,677,500.
