Former exec at Lehman Brothers not involved in SVB collapse

Silicon Valley Bank collapsed on March 10, when the California Department of Financial Protection and Innovation took ownership of the financial institution and passed it over to the Federal Deposit Insurance Corporation (FDIC).

Over the weekend, social media posts seen just about 10 million times between them connected a person named Joseph Gentile to the collapse of each Silicon Valley Bank and Lehman Brothers, a financial institution that collapsed in 2008 and prompted a sequence of economic failures that ended in the Great Recession.

“This is truly unusual,” one of the tweets reads. “Meet Joseph Gentile. He was the Chief Administrative Officer at Silicon Valley Bank. Prior to joining the firm in 2007, he served as the CFO for Lehman Brothers’ Global Investment Bank.”

Did a former Lehman Brothers government additionally paintings for Silicon Valley Bank?

No, a former Lehman Brothers government did not paintings for Silicon Valley Bank. He works for SVB Securities, which is unbiased of Silicon Valley Bank.

Joseph Gentile, the topic of the viral tweets, is these days the Chief Administrative Officer at SVB Securities, which is an funding company. SVB Securities is a subsidiary of Silicon Valley Bank’s former mum or dad corporate this is financially unbiased from the collapsed financial institution. He had prior to now been the CFO of a department throughout the higher Lehman Brothers’ financial institution and left a couple of yr and a part ahead of the financial institution filed for chapter.

A 2022 filing made by Silicon Valley Bank to the Federal Deposit Insurance Corporation (FDIC) described SVB Financial because the mum or dad corporate of Silicon Valley Bank. This mum or dad corporate additionally owns an funding financial institution, SVB Securities, and a budget control industry, SVB Capital, in step with the submitting.

Even regardless that they’re owned via the similar corporate, SVB Securities is financially unbiased from Silicon Valley Bank. That approach it’s imaginable one can fail at the similar time the opposite does not.

On March 11, SVB Securities introduced that Silicon Valley Bank’s collapse “will not directly impact” its industry operations, “which continue uninterrupted under the management of SVB Securities leadership team.”

“Since its acquisition in January 2019 by SVB Financial Group, the parent of Silicon Valley Bank, SVB Securities has maintained its financial and operational independence and has operated largely autonomously as a standalone subsidiary,” SVB Securities stated. “The firm has a strong client base and solid financial position, with a healthy balance sheet, significant excess net regulatory capital, and no outstanding debt.”

In a March 13 press release, SVB Financial Group reiterated that SVB Securities and some other one among its companies, SVB Capital, “are separate divisions of SVBFG and not part of Silicon Valley Bank.” These separate divisions are not liable for the debt held via SVB Financial, which is “exploring potential transactions” for the 2 firms.

The Silicon Valley Bank website does not checklist Gentile or a CAO in basic amongst Silicon Valley Bank’s executives. Daniel Beck is indexed because the financial institution’s CFO.

Previously, Gentile used to be the Chief Financial Officer of Lehman Brothers’ Fixed Income Division, or FID. He used to be not the CFO of all of the Lehman Brothers financial institution. He left his place at Lehman Brothers and joined the corporate that might develop into SVB Financial in May 2007, in step with the Financial Industry Regulatory Authority’s BrokerReport. Lehman Brothers went bankrupt in September 2008.