When I set up an interview with Bruce Van Saun, head of Citizens Financial Group, the 14th largest bank in the US, for a piece that would mark the first anniversary of the collapse of Silicon Valley Bank I didn’t anticipate having such a fresh feeling of déjà vu.
When I set up an interview with Bruce Van Saun, head of Citizens Financial Group, the 14th largest bank in the US, for a piece that would mark the first anniversary of the collapse of Silicon Valley Bank I didn’t anticipate having such a fresh feeling of déjà vu. But an action-packed week of news from New York Community Bank brought back unwelcome memories of last year’s banking crisis.
disclosed it had identified a “material weakness” in the company’s lending operations that had to do with “internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities.” Translation: People who are supposed to catch potential problems before they become actual problems screwed up. Then, after a report said the beleaguered regional lender was searching for much-needed investment, the bank’s stock fell by more than 40%, trading below $2 a share.
plunged quickly reassured me that this probably wasn’t the pilot episode of season two of America’s Banking Crisis. Many regional bank stocks were either down slightly or in positive territory. However, that wasn’t at all the case on March 10, 2023, the day SVB was shuttered by regulators. Other regional bank stocks got slammed: By the end of the day, most saw their stock down by double-digit percentages.
will gain instant credibility with the regulators, having Joseph Otting as CEO. EB: Do you see ’s situation as a sign that there could be more trouble coming for the banking industry? BVS: It’s idiosyncratic, because it’s an amalgamation of three banks in a very short timeframe. EB: Okay, but what about commercial real estate? The number of people working in offices is much, much lower than it was pre-pandemic.
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