“‘One of our major problems — I think, in this economy, right now — is there’s no leadership on the corporate level.’ ”
Billionaire activist investor Carl Icahn had some harsh issues to say about America’s company management throughout an interview with CNBC’s Closing Bell on Tuesday.
The sharp-tongued investor stated he sees a scarcity of excellent administration as a contributing issue to among the issues going through the U.S. financial system and U.S. corporations. To make sure, taking a swipe at company management performs into Icahn’s enterprise of rattling the C-suite at among the corporations wherein he invests.
However, his feedback come as buyers have been gripped by the gorgeous unraveling of Silicon Valley Bank, a California lender to startups and different corporations that was taken over by regulators final week, in a historic outflow of deposits.
Poor portfolio administration is being blamed, at the least partly, for Silicon Valley Bank’s failure.
On Tuesday, The Wall Street Journal, citing individuals accustomed to the state of affairs, reported that the Justice Department and the Securities and Exchange Commission had been investigating SVB’s demise.
SVB Financial CEO Greg Becker had been upbeat in regards to the financial institution simply days earlier than it was taken over by regulators and put into receivership by the Federal Deposit Insurance Corp.
Critics say that the financial institution poorly managed its enterprise of borrowing and lending and was saddled with a portfolio of longer-dated debt that had misplaced worth as a result of rates of interest rose dramatically over the previous 12 months and the investments weren’t correctly hedged.
SVB representatives didn’t instantly reply to a request for remark.
The probes into the financial institution could not end in any motion.
Source web site: www.marketwatch.com
