Timothy Sumer

Sign up for Power Corridor using this link: A number of things went wrong at Silicon Valley Bank over the last days, weeks and years, there were huge failures of risk management. The risk manager would have some tough questions to answer, except that it appears that they didn’t have a risk manager on staff for almost nine months of the last year. There were issues tied to the different regulations applied to community banks when compared to national banks in the United States. There were investment decisions that were made that I struggle to understand, and the final stroke was a capital raise attempt that had next no chance of succeeding. You can’t raise capital from investors on the same day that you announce a close to two-billion-dollar hole in your balance sheet and the equity is tanking in value. Anyhow, let’s go over the issues at Silicon Valley Bank, try and understand how banks work, look at the news from last night, and try to imagine how things might work out

Get 25% off Blinkist premium and enjoy 2 memberships for the price of 1! Start your 7-day free trial by clicking here: Egypt allowed its pound to tumble to a new low this week as the country struggles with a foreign currency crisis that is hurting businesses. The slump in the currency comes after Egypt agreed to move to a flexible currency regime as part of an IMF $3bn bailout intended to help relieve its foreign currency shortage. Since the central bank said it would move to a flexible currency rate in October, the pound has lost a third of its value as it has allowed it to devalue in phases. Analysts warn that it has further to fall until supply-demand equilibrium is restored to the foreign exchange market. The weakness of the Egyptian pound is adding to the pain of millions of Egyptians as it fuels inflationary pressure. Patrick's Books: Statistics For The Trading Floor: Derivatives For The Trading Floor: Corporate Finance: Patreon Page: Visit our webs