Hindenburg Research Gets Trolled For Failing To Detect SVB Crisis In Home Country
Over seven weeks after Hindenburg Research's report came out and rattled the Adani group, US-based short-seller is now getting trolled for missing the 'real scam' in its home country¡¯s city of California, where the Silicon Valley Bank (SVB)¡¯s collapse has happened.
Over seven weeks after Hindenburg Research's report came out and rattled the Adani group, the US-based short-seller is now getting trolled for missing the 'real scam' in its home country¡¯s city of California, where the Silicon Valley Bank (SVB)¡¯s collapse has happened.
A Scam No One Could Detect?
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SVB, which was amongst the biggest US banks and also a big lender for tech start-ups, collapsed and was abruptly shut down last week by the state regulator - California Department of Financial Protection and Innovation( DFPI) - after it disclosed it had suffered a loss of $1.8 billion from a $21 billion sale of its bond holdings.
The closure was swift as the regulator took control of the lender within a day after it informed it had run out of money and was raising fresh capital. On Thursday, shares of the bank's parent SVB Financial had crashed by a whopping 60 per cent. The stock was down by another 60 per cent in premarket trading on Friday until being paused, as per Business today report.
But what surprised many was the share sale by top executives of the bank, including CEO Gregory Becker, who sold around $4 million worth of stocks just a few days before the collapse. Now, its come to light that the sale of shares by top executives just before the collapse may be a scam and that no agency could get the wind of it before it happened.
Also Read: How A 116-year-old Indian Bank's Customers Became Unexpected Victims Of SVB Collapse
Netizens Troll Hindenburg Research
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Netizens didn't shy away from slamming US-based Hindenburg for failing to check what was happening in the banking system in its home country.
"Hindenburg report missed to see books of "Silicon Valley Bank" (SVB) in very own country, but did hit Job on "Adani Business" in India," a Navy veteran wrote on Twitter. "It¡¯s a clear case of conspiracy, who would have got benefited politically?"
Hindenburg report missed to see books of ¡°Silicon Valley Bank¡± (SVB) in very own country, but did hit Job on ¡°Adani Business¡± in India.
¡ª Cdr AA ?? (@Veteran__007) March 12, 2023
It¡¯s clear case of conspiracy, who would have got benefited politically?
Taking a dig at the Hindenburg, another Twitter user said he was waiting for Hindenburg to produce a report on Silicon Valley Bank "but they won't because they can't short it now".
My dear learned friend, SVB has done any manipulation ? Any money laundering ? Please provide your inputs. Addani had done smuggling, money laundering and what not. All are aware of. Pls stop defending wrongs atleast. Might SVB has done wrong, still doesn't give aadani clean chit
¡ª Ns (@NiralSh38365616) March 12, 2023
Another twitter user said from $700 to $40, Silicon Valley Bank was shut down by the US regulators after it lost 95 per cent of its market cap and went bankrupt. "A loss of $110 billion to the shareholders. Seems like Hindenburg completely missed this shorting opportunity".
From $700 to $40, Silicon Valley bank shuts down by USA regulators after it lost 95% of its market cap and went bankrupt.
¡ª Rishi Bagree (@rishibagree) March 11, 2023
A loss of $110 billion to the shareholders.
Seems like Hindenburg completely missed this shorting opportunity ?
Genevieve Roch-Decter, CEO of Grit Capital, pointed out that Silicon Valley Bank CEO, CFO, and CMO sold over $4.4 million in stock over the last two weeks. "But they didn't know anything right?" she said, suggesting that the top executives were in the know of the financial health of SVB .
This is Western Banking system!
¡ª Rohit (@roshovani) March 11, 2023
Investor Bill Ackman, who attacked #Adani Group over #Hindenburg report, now demands bailout from US govt for Silicon Valley Bank.
Citibank India sold of its retail banking to Axis bank and moved out. Did any news agency spoke about it? - why? https://t.co/Z9HaPEg3zi
"This is the Western Banking system," Rohit, a user, replied to Roch-Decter's tweet. "Investor Bill Ackman, who attacked Adani Group over #Hindenburg report, now demands bailout from US govt for Silicon Valley Bank. Citibank India sold of its retail banking to Axis Bank and moved out." "Did any news agency speak about it? - why?" he asked.
Ketan Gandhi, social media head of BJYM Vasai-Virar, also targetted Hindenburg and asked why it was silent on SVB. "Why are you so silent on the Silicon Valley Bank fraud issue," he asked. "Do you see the real issue in your own country USA? Or you are just paid to bark on #India and Indian businesses like #Adani."
#hindenburg you BARKING DOG ?
¡ª Ketan Gandhi (@Ketangandhi_) March 11, 2023
Why are you so silent on Silicon Valley Bank fraud issue.
Do you see the real issue in in your own country #USA. Or you are just paid to bark on #India and Indian businesses like #Adani
By the way #AdaniSolidComeback is bringing India again on top pic.twitter.com/lntY7RlOsZ
Also Read: Meet Nathan Anderson, The Man Behind Hindenburg Report
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