Fed official: SVB itself was main cause of bank's failure
The nationโs top financial regulator is asserting that Silicon Valley Bankโs own management was largely to blame for the bankโs failure earlier this month and says the Federal Reserve will review whether a 2018 law that weakened stricter bank rules also contributed to its collapse.
Fed official: Bank rules under review in wake of SVB failure
The Federal Reserveโs bank supervisors warned Silicon Valley Bankโs management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems.
After two historic US bank failures, hereโs what comes next
Two large banks that cater to the tech industry have collapsed after a bank run, government agencies are taking emergency measures to backstop the financial system, and President Joe Biden is reassuring Americans that the money they have in banks is safe.
Hewlett Packard Enterprise to move headquarters to Texas
SPRING, Texas โ Tech giant Hewlett Packard Enterprise said it is moving its global headquarters to the Houston area from California, where the company's roots go back to the founding of Silicon Valley decades ago. Hewlett Packard Enterprise was created in 2015 when the computer hardware pioneer Hewlett-Packard Inc. broke into two parts after years of struggling to keep up with industry trends, such as consumersโ shift away from personal computers. The split left one new company, HPE, concentrated on the business of selling data center hardware and business software, while another new company, HP Inc., kept the legacy PC and printer operations. HP Inc. is still headquartered in Palo Alto, California, and remains the bigger of the two companies in terms of revenue. โWe are incredibly committed to Silicon Valley,โ he said.
Italian regulator investigates Google over digital ads
ROME โ Italian regulators opened an investigation Wednesday into Google over alleged abuse of its dominant role in the country's online ad market, adding to the global scrutiny that the Silicon Valley company is facing. Advertisers use these tools to determine how effective their ad campaigns are by measuring how many views and clicks an online ad gets. Reduced competition in the digital ad market could be bad for consumers, the authority said. Italy's online advertising market was worth more than 3.3 billion euros ($4.9 billion) last year, with display ad revenue accounting for 1.2 billion euros of the total, the authority said. Last year, EU regulators fined Google 1.49 billion euros for freezing out rivals in the online ad market.
Rising star in Detroit departs suddenly for Silicon Valley
The chief financial officer at General Motors, Dhivya Suryadevara, is trading Detroit for Silicon Valley in a surprise departure to join Jack Dorsey's startup, Stripe. She has helped the company strengthen our balance sheet, improve our cost structure, focus on cash generation and drive the right investments for our future. Stripe is maintaining a $2 billion balance sheet, more fortress-like than besieged, as so many major companies have become during the COVID-19 crisis. Adding to Stripes client roster this year alone are the companies Caviar, Coupa, Just Eat, Mattel, NBC, and Paid. I really enjoy leading complex, large-scale businesses and I hope to use my skills to help accelerate Stripes already steep growth trajectory.General Motors named John Stapleton, GM North America chief financial officer, as acting global chief financial officer, effective Saturday.
Silicon Valley-based lender sued thousands of Texans during the pandemic. It stopped when we started asking questions
Oportun Inc. also said it would cap interest rates on new loans at 36% a percentage that consumer advocates consider the gold standard for smaller personal loans. That reporting has included interviews with individuals whom Oportun sued in small claims courts across the state, as well as numerous consumer advocates. Court records show that it has filed thousands of debt claims in Texas this year alone and tens of thousands since 2016. Some consumer advocates believe that size APR is still too high, but it is considered a gold standard ceiling for the kind of smaller installment loans that Oportun offers, which range from $300 to $10,000. Consumer advocates and attorneys praised the move, with some caveats, and said they hoped it would inspire other installment lenders, subprime and otherwise, to follow suit and possibly generate momentum for a nationwide interest-rate cap.
Tech companies slam Trumps executive order restricting work visas
(CNN) Silicon Valley is pushing back against President Donald Trump's latest immigration curbs, this time targeting visa programs that tech companies use to bring in thousands of skilled foreign worker. Both visas are popular with the United States' tech giants, and many were quick to condemn the executive order. "Immigration has contributed immensely to America's economic success, making it a global leader in tech, and also Google the company it is today," Google CEO Sundar Pichai said on Twitter. "Disappointed by today's proclamation we'll continue to stand with immigrants and work to expand opportunity for all," he added. "Preventing high skilled professionals from entering the country and contributing to America's economic recovery puts American's global competitiveness at risk," a company spokesperson said.