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close video Dan Niles saw the SVB collpase coming, now he’s shorting some regional banks

The Satori Fund founder Dan Niles analyzes the banking sector after recent turmoil, telling ‘The Claman Countdown’ he was shocked to see banks go under as soon as they did.

An auditor and underwriters have reportedly been named for the first time in a lawsuit concerning the collapse of Silicon Valley Bank.

SVB's auditor KMPG along with underwriters including Goldman Sachs, Bank of America and Morgan Stanley, in an investor lawsuit based on alleged misstatements leading to the bank’s collapse, according to Bloomberg.

The complaint was filed Friday in the federal court in San Francisco.

The suit names Silicon Valley Bank Chief Executive Officer Greg Becker and other bank directors and officers as defendants. 

FDIC SAYS FIRST CITIZENS BANK HAS REACHED DEAL TO PURCHASE SILICON VALLEY BANK

SVB (Silicon Valley Bank) logo is seen in this illustration taken March 19, 2023. (REUTERS/Dado Ruvic / Fox News)

.Collectively, the defendants "misrepresented the strength of the company’s balance sheet, liquidity, and position in the market," according to the lawsuit. 

The executives, auditor and underwriters "understated and concealed the magnitude of the risks" facing the bank, which undermined the value of its own securities portfolio, it said.

FOX Business has reached out to KPMG, Goldman Sachs, Bank of America, Morgan Stanley and Keefe, Bruyette & Woods, Inc., which is named as an underwriter defendant, for comment.

AMERICANS' FAITH IN BANKS DROPS AFTER FAILURES: POLL

Customers wait in line outside of a Silicon Valley Bank branch in Wellesley, Massachusetts. (Sophie Park/Bloomberg via Getty Images / Getty Images)

After 40 years, Silicon Valley Bank, the nation’s 17th largest, was shut down last month by the FDIC as regulators moved to protect customers as it faced a liquidity crunch after losing $2 billion. 

It became the largest bank failure since the financial crisis. 

SVB’s parent company filed for Chapter 11 bankruptcy.

KPMG’s alleged liability, explained in greater detail, is based in part on the fact that it signed off on SVB’s 2022 annual report two weeks before the March 8 market close, according to the suit.

COMPANY VETERAN PRESIDED OVER COLLAPSE OF SILICON VALLEY BANK

A customer stands outside a shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023, in Santa Clara, California. (Justin Sullivan/Getty Images / Getty Images)

 That was when the bank said it was seeking to raise $2.25 billion to address its liquidity problems and announced an approximately $1.8 billion loss on the sale of its securities.

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The Justice Department, Securities and Exchange Commission and Federal Reserve are examining issues around SVB’s collapse.

No one at the bank has been accused of wrongdoing, and the investigations could end without bringing charges or lawsuits.

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NY Attorney General files lawsuit to recoup $2.2M in crypto lost to job scam

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NY Attorney General files lawsuit to recoup .2M in crypto lost to job scam

Victims in New York were promised “well-paying, flexible jobs,” only to be tricked into a crypto scam, according to New York Attorney General Letitia James.

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Donald Trump’s Middle East envoy pushes for Gaza ceasefire deal ahead of US inauguration

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Donald Trump's Middle East envoy pushes for Gaza ceasefire deal ahead of US inauguration

Donald Trump’s Middle East envoy has met Israel’s prime minister in an effort to secure a ceasefire deal in Gaza before the president-elect takes office on 20 January.

Benjamin Netanyahu’s office confirmed details of the meeting with Steve Witkoff on Saturday, adding that the head of the Israeli Mossad intelligence agency has been deployed to Qatar in order to “advance” talks.

It was not immediately clear when David Barnea would travel to Doha for the latest round of indirect discussions between Israel and Hamas.

Earlier on Saturday, an Israeli official said some progress had been made, mediated by Egypt, Qatar and the United States, to reach a deal in Gaza.

Israel's Chief of the Mossad David Barnea and Security Agency director Ronen Bar attend a memorial ceremony of the Hamas attack on October 7 last year that sparked the ongoing war in Gaza, at the Mount Herzl military cemetery in Jerusalem on October 27, 2024. GIL COHEN-MAGEN/Pool via REUTERS
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Ronen Bar (left), director of Israel’s security agency, and David Barnea (right), head of Mossad, at a ceremony marking the 7 October Hamas attack. File pic: Reuters

The mediators are making renewed efforts to halt fighting in Gaza and free the remaining Israeli hostages held there before Mr Trump takes office.

A deal would also involve the release of some Palestinian prisoners held in Israeli jails.

Families of Israeli hostages welcomed Mr Netanyahu’s decision to dispatch the officials, with the Hostages and Missing Families Forum Headquarters describing it as a “historic opportunity”.

Mr Witkoff arrived in Doha on Friday and met the Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Qatar’s foreign ministry said.

Egyptian and Qatari mediators received reassurances from Mr Witkoff that the US would continue to work towards a fair deal to end the war soon, Egyptian security sources said, though no further details were released.

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Israel launched its assault on Gaza after Hamas fighters stormed across its borders in October 2023, killing 1,200 people and taking more than 250 hostages, according to Israeli figures.

Families of the roughly 100 hostages still held in Gaza are pressing Mr Netanyahu to reach a deal to bring their loved ones home.

Since then, more than 46,000 people have been killed in Gaza, according to Palestinian health officials, with much of the area destroyed and gripped by a humanitarian crisis, with most of its population displaced.

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Pope Francis honoured by Joe Biden with Presidential Medal of Freedom with Distinction

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Pope Francis honoured by Joe Biden with Presidential Medal of Freedom with Distinction

Pope Francis has been honoured with America’s highest civilian award by President Joe Biden, who has described the pontiff as “a light of faith, hope, and love that shines brightly across the world”.

It is the first time Mr Biden, 82, has given the Presidential Medal of Freedom with Distinction during his four years in office.

In a statement, the White House said the award is “presented to individuals who have made exemplary contributions to the prosperity, values, or security of the United States, world peace, or other significant societal, public or private endeavours”.

Mr Biden had been scheduled to present the medal to Pope Francis, 88, in person on Saturday in Rome on what was to be the final overseas trip of his presidency. But the president cancelled his visit to monitor the California wildfires.

The White House said Mr Biden bestowed the award during a phone call in which they also discussed efforts to promote peace and alleviate suffering around the world.

President Joe Biden presents Bono with the Presidential Medal of Freedom. Pic: AP
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President Joe Biden presented Bono with the Presidential Medal of Freedom. Pic: AP

President Joe Biden presents the Presidential Medal of Freedom to Denzel Washington. Pic: AP
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Denzel Washington was also recognised. Pic: AP

President Joe Biden presents the Presidential Medal of Freedom to Michael J Fox. Pic: AP
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Michael J Fox was bestowed with the honour. Pic: AP

The award can be presented with or without distinction.

Mr Biden presented the medal of freedom – without distinction – on 5 January to several people including fellow Democrat Hillary Clinton, humanitarian and U2 singer Bono, fashion designer Ralph Lauren and actors Michael J Fox and Denzel Washington.

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‘I could have beaten Trump’

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Mr Biden himself is a recipient of the award with distinction, recognised when he was vice president by then president Barack Obama in a surprise ceremony eight years ago.

President Barack Obama presents Vice President Joe Biden with the Presidential Medal of Freedom during a ceremony in the State Dining Room of the White House in Washington, Jan. 12, 2017. (AP Photo/Susan Walsh)
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Barack Obama presented Joe Biden with the Presidential Medal of Freedom with Distinction in 2017. File pic: AP

The citation for the pope’s honour said his “mission of serving the poor has never ceased”.

“A loving pastor, he joyfully answers children’s questions about God. A challenging teacher, he commands us to fight for peace and protect the planet. A welcoming leader, he reaches out to different faiths,” it added.

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