SVB/SBNY – Insiders Take on the Lead Up to Failure, Auction Process and Suggested FDIC Insurance Revisions

With the credible perspective very few possess, Hernan Hernandez sheds light on this past weekend’s wild events which shockingly led to Silicon Valley Bank and Signature Bank failing. Joined by Travillian hosts, Brian Love and Indra Elangovan, Hernan tries to piece together what the FDIC may have missed and gives gives a behind-the-scenes view of the fair auction, bidding process and how this event may change banking sector fundamentals like deposit flows and liquidity risks.  Also tune in to hear Hernan’s hot takes on potential changes to the FDIC’s insurance policy.

Video Index

0:20 | Intro and What Was Missed

12:09 | Auction Process/Changes to Banking Fundamentals

14:30 | Potential Changes to FDIC’s Insurance Policy

Hernan Hernandez – Background Snapshot:

Hernan started at the FDIC in Los Angeles, CA in 1990 as a Commissioned Bank Examiner – Capital Markets Specialist, primarily monitoring West Coast banks of $100M to $50B in assets. He then joined Comerica Bancorp, as First Vice President and Manager of Finance for the bank’s Western Division. There, he managed a 15-person staff in charge of budgeting, strategic planning, forecasting earnings, measuring and analyzing divisional performance, asset/liability hedging strategies, and customer profitability management. Hernan was the key strategic analyst in the Comerica/Imperial merger that recognized $785 million gain on the $1.3 billion transaction (2.4x TBV). He moved to City National Bank, Los Angeles, CA, in 2004 as Senior Vice President and Manager – Financial Planning, Corporate Development, Strategy and Special Projects, directly reporting to the CEO and Board of Directors. Hernan was an important part of the executive strategic team that grew the bank from $12 billion to over $90 billion. He managed the team in charge of strategy and merger and acquisitions (including equity partnerships and direct investments in fintech ventures) and led the Strategic Project Management Group which consists of 23 colleagues managing regulatory, efficiency and productivity projects throughout the organization. Hernan is now an FIG investment banker, primarily covering community and regional banks on the West Coast.