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close video Silicon Valley Bank fall: Former Fed official says he would have pressed harder for a private sector solution

Former Federal Reserve Vice Chair Randal Quarles gives his take on the Fed’s reaction to collapse of the Silicon Valley Bank on ‘Kudlow.’

The Biden administration is gearing up to investigate the collapse of Silicon Valley Bank, which was the 16th-largest bank in the United States before it went under after a run on the bank last week.

The Justice Department is in the early stages of investigating SVB's failure, Fox News has confirmed. The news was first reported by the Wall Street Journal, which said the Securities and Exchange Commission is also investigating.

These inquiries may or may not lead to charges or allegations of wrongdoing and are typical of the government's response after a big company reports massive, unexpected losses.

SVB suffered $1.8 billion in losses last week as it faced a liquidity crisis caused by bad investments in bonds. The bank's share price fell 60% last week and the Federal Deposit Insurance Corporation (FDIC) stepped in Friday to take over the bank's operations as depositors panicked and rushed to withdraw their money. Ticker Security Last Change Change % SIVB SVB FINANCIAL GROUP 106.04 -161.79 -60.41%

The government probes will look into stock sales that SVB Financial's officers made days before the bank collapsed, according to the Journal. The Justice Department's investigation reportedly involves federal fraud prosecutors based in Washington and San Francisco. 

SVB COLLAPSE: MOODY'S FLAGS SIX OTHER BANKS WITH CONCERNING CREDIT RATINGS

An FDIC sign is posted on a window at a Silicon Valley Bank branch in Wellesley, Mass., on Saturday, March 11, 2023. (AP Photo/Peter Morgan / AP Newsroom)

A spokesperson for the SEC would not confirm the investigation but referred to SEC Chair Gary Gensler's Sunday statement, which said, "we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly. Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws."

SVB's collapse was the second-largest bank failure in U.S. history and the largest since Washington Mutual went under in 2008. As of last year, the bank held $209 billion in assets and $175.4 billion in deposits, according to the FDIC. 

SILICON VALLEY BANK COMMITTED ‘ONE OF THE MOST ELEMENTARY ERRORS IN BANKING,' LARRY SUMMERS SAYS

The Justice Department, led by U.S. Attorney General Merrick Garland, is reportedly investigating Silicon Valley Bank’s collapse. ((Photo by Drew Angerer/Getty Images) / Getty Images)

Prior to its failure, SVB mainly serviced tech startups and their investors. As the tech industry grew, so too did SVB's deposits, increasing 86% in 2021 to $189 billion.

But concerns over the bank's health prompted a run on deposits last week. On Thursday, customers attempted to withdraw $42 billion — nearly a quarter of the bank's total deposits — which the bank simply did not have available. SVB had tied up most of its funds in treasury bonds and other long-term investments, which have declined in value as the Federal Reserve has raised interest rates to combat inflation in the past year.

SILICON VALLEY BANK COLLAPSE: HERE'S WHO BENEFITTED FROM THEIR EXECUTIVE, PAC DONATIONS

Igor Fayermark, right, from the Federal Deposit Insurance Corporation (FDIC), exits Silicon Valley Bank’s headquarters in Santa Clara, California, on Monday, March 13, 2023. (AP Photo/Benjamin Fanjoy / AP Images)

Securities filings show that SVB CEO Greg Becker and CFO Daniel Beck each sold shares in their bank the week before it collapsed. The Journal reported that Becker exercised options on 12.451 shares on Feb. 27 and sold them for $2.3 million.

Beck sold a little more than $575,000 worth of shares on Feb. 17, which was roughly one-third of his total stake in the company.

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However, both sales were scheduled 30 days in advance under 10b5-1 plans, which allow insiders to schedule share sales to allay suspicion of illegal trading. "The SEC recently tightened rules for the plans, which include a 90-day waiting period before sales can be executed. The new rules went into effect on Feb. 27, the same day the executives sold," the Journal reported. 

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Sources: Vols QB Iamaleava to play vs. Georgia

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Sources: Vols QB Iamaleava to play vs. Georgia

Tennessee‘s Nico Iamaleava has been cleared medically to play Saturday against Georgia and is set to return as the Vols’ starting quarterback, sources told ESPN.

Iamaleava, a redshirt freshman, missed the second half of the 33-14 win over Mississippi State last week after suffering a blow to the head. He was listed as questionable earlier this week on the SEC availability report but has been removed in the latest report.

Iamaleava practiced this week, including team periods, and there was optimism among the staff that he was trending in the right direction and would be able to play. But the final call was made by medical personnel. Iamaleava was examined by doctors for what sources told ESPN were concussion-like symptoms after leaving the Mississippi State game. He did not return to the sideline for the second half.

Tennessee coach Josh Heupel said on Monday that he felt like Iamaleava would be in “great shape for Saturday” and noted that Iamaleava was with the team earlier Monday morning for meetings and team activities. The Vols’ first full-scale practice was Tuesday.

Iamaleava was having his most productive outing against an SEC team this season before leaving the game against Mississippi State. He completed 8 of 13 passes for 174 yards, no interceptions and a pair of touchdowns as Tennessee built a 20-7 halftime lead. In Iamaleava’s previous five SEC games, he had accounted for three touchdowns and turned it over five times. He was also sacked 15 times in those five games.

Redshirt senior Gaston Moore filled in for Iamaleava in the second half last week and finished 5-of-8 for 38 yards with no touchdowns or interceptions.

Getting Iamaleava back for the Georgia game is big news for Tennessee, which is right in the middle of the SEC championship race and College Football Playoff picture.

Receiver Dont’e Thornton (hand) has also been given the green light to play for Tennessee after earlier being listed as questionable.

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College football preview: Tennessee-Georgia, Big 12 CFP scenarios ahead of Week 12

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College football preview: Tennessee-Georgia, Big 12 CFP scenarios ahead of Week 12

Week 12 is here as we take a look at an SEC matchup that has College Football Playoff implications, learn about three of the nation’s top passers who all played under the same coach and see what’s going on in the Big 12.

No. 7 Tennessee will visit Sanford Stadium as it takes on conference opponent No. 12 Georgia on Saturday night. With so much at stake, what can each team improve on ahead of this SEC showdown?

The Big 12 has six teams in the hunt for a spot in the conference title game. With the final CFP rankings coming out in less than a month, what scenario looks most realistic for the conference in terms of how many of its teams could make the 12-team field?

Our college football experts preview big games and storylines ahead of the Week 12 slate.

Jump to a section:
Tennessee-Georgia | The coach behind three top QB passers
What’s going on in the Big 12 | Quotes of the Week

What has each team done well in conference play? What improvements can be made?

Tennessee:

It has been a historic (and dominant) season for Tennessee’s defense, which has yet to give up more than 19 points in any of its nine games. Against SEC competition, the Volunteers lead the conference in scoring defense, giving up 16.7 points per game, and also lead the way in third-down defense and red zone defense. In other words, they’ve given up very little of anything on defense and are buoyed by a line that’s both talented and deep. Tennessee plays a ton of players up front and has been especially good at forcing key turnovers. In 23 trips inside its own 20-yard line, the Vols have forced six turnovers.

The reality is that Tennessee has played to its defense for much of this season out of necessity. The offense has lacked consistency and struggled to generate explosive plays, particularly in the passing game. It’s not all on redshirt freshman quarterback Nico Iamaleava, either. Iamaleava has thrown only five touchdown passes in six SEC games, and the Vols are tied for 10th with an average of 7.5 yards per completion. Iamaleava, who sustained a head injury in a win over Mississippi State last week, has been the victim of poor pass protection at times, and his receivers have dropped some costly passes. Iamaleava has also been shaky when it comes to overthrowing receivers and occasionally holding onto the ball too long.

The bright spot on offense for Tennessee has been running back Dylan Sampson, who has a school-record 20 rushing touchdowns. He has been a constant for the Vols on offense and has an SEC-leading 772 rushing yards and 11 touchdowns in conference play. As good as he has been, the Vols are probably going to need more from their passing game to win in Athens. — Chris Low

Georgia:

The Bulldogs didn’t do much of anything well in last week’s 28-10 loss at Ole Miss, which was the first time in a long time that Kirby Smart’s team was manhandled on the lines of scrimmage.

The good news for Georgia: It’s heading home to Sanford Stadium for the first time in more than a month. Georgia hasn’t dropped back-to-back games in the regular season since 2016, Smart’s first season, and it has bounced back after each of its past eight losses. The Bulldogs have won seven of their past eight games against the Volunteers.

For all of quarterback Carson Beck‘s turnovers, Georgia’s problems on offense probably start up front. The offensive line hasn’t done a good job of protecting him, and the Bulldogs’ lack of a potent running game has prevented them from effectively utilizing play-action passes. Their banged-up offensive line is going to face another formidable defensive front Saturday. Georgia has 27 dropped passes, fourth most in the FBS, according to TruMedia, so its receivers need to become more reliable as well. — Mark Schlabach


The coach behind three of college football’s top passers

Miami‘s Cam Ward, Washington State‘s John Mateer and North TexasChandler Morris are three of the top five quarterbacks in total offense this season in FBS. All three have the same head coach to thank for where they are today.

North Texas coach Eric Morris coached Ward at Incarnate Word and Washington State, recruited Mateer to the Cougars and signed Morris out of the transfer portal this offseason. All three hailed from Texas and are putting up big numbers this season. Morris, a Mike Leach disciple, knows what he’s looking for when it comes to QBs.

For each one, the journey was different. Ward was a zero-star recruit out of West Columbia, Texas, played in a wing-T offense and had no scholarship offers. But he showed up to Incarnate Word’s camp in 2019 and impressed with his quick release and accuracy. Morris saw appealing traits, too, in Ward’s multisport talents.

“He was such a good basketball player,” Morris said. “He was a bigger guy who could really handle the ball and move with ease. He had a twitch and quickness about him that was almost Mahomes-esque, where he’s not fast but you see him get out of the pocket and scramble and he’s nifty on his feet. He saw the floor great and shot the basketball great.

“It might be easier at an FCS school to take that risk, but it was something we were really confident in.”

Ward came in with extreme confidence, telling coaches he’d win the starting job over their returning all-conference player (and he did). He followed Morris to Pullman, Washington, out of loyalty to the coach who believed in him. Now he’s playing on a big stage, chasing a College Football Playoff bid and a Heisman Trophy with the No. 9 Hurricanes.

“It’s been fun to watch him flourish and get rewarded for being patient all these years,” Morris said.

When Morris left UIW to become Washington State’s offensive coordinator in 2022, he brought Ward but needed another QB. On his first recruiting trip in Texas, he stopped by to check out Mateer. The two-star recruit had a prolific senior season at Little Elm High School but was committed to Central Arkansas. Morris didn’t understand what FBS programs were missing and convinced Mateer to flip.

After two seasons behind Ward, Mateer has emerged as one of the top dual-threat QBs in college football with 2,332 passing yards, 805 rushing yards (excluding sacks) and 33 total TDs.

“I think the sky’s the limit,” Ward said. “He’s just so dang hard to tackle in the open field. Just a kid that loves ball and was under-recruited. The tide’s turned and he ends up being a big-time ballplayer.”

Chandler Morris was not an under-the-radar talent, but he’s having his best season yet at North Texas. He began his career at Oklahoma, won the starting job at TCU in 2022, sustained a knee injury in its season opener and then watched Max Duggan lead the Horned Frogs to the national title game.

Morris had a six-game stint as TCU’s starter last season before injuring the same knee. At UNT, he’s leading the nation’s No. 3 passing offense with 3,244 total yards and 30 TDs. Like Ward and Mateer, he processes information quickly, makes plays with his feet and throws outside the pocket with accuracy. If you ask Eric Morris, those traits are a must in today’s game. When paired with his version of Air Raid ball, you get big-time results.

“It’s been fun to see him get his swagger back,” Morris said.

Eric Morris points to Patrick Mahomes, Lamar Jackson and Jayden Daniels. The QBs thriving at the highest level are becoming unstoppable by creating plays out of the pocket. And so are his guys.

“Everybody obviously watches Cam and the magic he makes,” Morris said, “but I think all three of ’em can make plays when it’s not a perfect play call. There are a bunch of really good pure passers nowadays, but that’s what sets them all apart.” — Max Olson


What’s going on in the Big 12?

Two-thirds of the way through the Big 12 schedule, six teams are still in the hunt for a title-game appearance: BYU (6-0), Colorado (5-1), Arizona State, Iowa State, Kansas State and West Virginia, all of which are 4-2. There are too many variables to discuss all the scenarios, but the conference has a straightforward tiebreaker policy.

It’s possible to come up with scenarios in which the Big 12 could get two bids, one bid or shut out altogether.

For the Big 12 to get two bids, BYU probably would have to finish 12-0, then lose a close game in the championship to a two-loss team (Colorado, Iowa State or Kansas State). A 12-1 BYU team would get consideration, but it would become a question of how far it would fall and what else happens around the country.

The most likely scenario is the Big 12 will get one team in: whichever one wins the conference title game. If BYU wins out, it will have a bye, but if it slips up even once — or if another team wins the title — Boise State might be in position to get a first-round bye, assuming the Broncos win out.

The doomsday scenario in the Big 12 is if the conference champion has two or three losses and Army and Boise State win out. If that’s the case, there is a good possibility both of those schools would be ranked ahead of the Big 12 champion and the Big 12 would be left out. — Kyle Bonagura


Quotes of the Week

“They’re stubborn, man. They’re physical. He is an elite runner. The runs they run are sometimes nontraditional. They run some runs that other people don’t run because of the space in the box. He’s very patient. He hits small creases. He’s hard to tackle. How many touchdowns has he got in the SEC? Twenty-something? That’s crazy. In the SEC? The SEC is the hardest league in the world to run the ball in on because they’ve got the most size defensive lineman, and he continues to do it at a crazy pace to me.” — Kirby Smart on Volunteers tailback Dylan Sampson.

“I never try to take a step back. I try to take a step up. I’m always putting my head out the window. I’m trying to see around the corner, not trying to see straight ahead. It’s normalcy for everybody to see what’s in front of them. I’m trying to see around the corner. That’s the relationship I have with the Lord, to help me see around the corner so I can help navigate these young men as well as the women that’s attached to our program to a better way and a better life. So I don’t get caught up in the ‘You go, boys!’ or the ‘You ain’t nothing.’ You know, if I would’ve listened to you guys earlier, I’ve gotta listen to you now. So I might as well just put some headphones on and block you out. Notice I don’t have a sponsor for headphones, but that would’ve been a good placement for a sponsor.” — Deion Sanders when asked if he takes time to step back and appreciate the magnitude of Colorado’s turnaround.

“I hope anyone who has ambitions about playing in the National Football League, let’s see what you’ve got against Clemson. Let’s see you play your best game here. If you weren’t focused for Virginia, which I can’t imagine you weren’t — and I’m not saying anybody was not focused — but if they didn’t get your focus, I imagine Clemson will get your focus when you put the tape on.” — Pitt coach Pat Narduzzi on whether playing Clemson gets the attention of his players.

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What makes a Honda a Honda? Prologue engineers help us find out!

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What makes a Honda a Honda? Prologue engineers help us find out!

On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.

Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show!

Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.

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