Business
San Francisco Bank, Others Affected by Failure of Silicon Valley Bank
Another Bay Area bank was affected Monday by uncertainty in the financial markets following the failure of Silicon Valley Bank on Friday. Stock in San Francisco-based First Republic Bank sank nearly 62 percent Monday and shares of other regional banks suffered losses, reportedly. On Sunday, regulators seized Signature Bank in New York after it failed.
By Keith Burbank
Bay City News
Another Bay Area bank was affected Monday by uncertainty in the financial markets following the failure of Silicon Valley Bank on Friday.
Stock in San Francisco-based First Republic Bank sank nearly 62 percent Monday and shares of other regional banks suffered losses, reportedly.
On Sunday, regulators seized Signature Bank in New York after it failed.
But a San Jose State University professor of finance and accounting does not see the failure of Silicon Valley Bank and Signature Bank as signs of a coming crisis.
“I don’t think it is a huge contagion issue,” said assistant professor Matthew Faulkner. “It’s more toward an isolated incident.”
Over the weekend and Monday, top federal officials including President Joseph Biden appeared to be getting ahead of the issue.
Biden sought to ease American’s fears by making all deposits held by Silicon Valley Bank customers available regardless of the amount of their deposits, federal officials said over the weekend.
That includes businesses who must pay their employees and their bills, officials said.
“Americans can have confidence that the banking system is safe,” Biden said Monday morning. “Your deposits will be there when you need them.”
Investors will not be protected, Biden said. According to the president, they took a risk and “that’s how capitalism works.”
Taxpayers will not be on the hook for the losses. Money to cover the losses will come from fees that banks pay into the deposit insurance fund, Biden said.
In California, state Treasurer Fiona Ma said Monday that her office has no exposure to Silicon Valley Bank and state and local government funds are safe.
Additionally, companies that did business with Silicon Valley Bank won’t have to pay any penalty if they must file their payroll taxes late, according to the California Employment Development Department, which collects payroll taxes.
Employers can request a waiver online at https://edd.ca.gov/en/payroll_taxes/e-Services_for_Business/ or in writing.
Silicon Valley Bank failed Friday after depositors and investors tried to withdraw $42 billion from the bank on Thursday. The bank had $175 billion in deposits at the end of last year. The withdrawals left the bank with a negative cash balance of nearly $1 billion Thursday.
Monday, First Republic Bank said it widened its financial position with liquidity from the U.S. Federal Reserve Bank and JP Morgan Chase and Co.
First Republic now has more than $70 billion to fund operations, the bank’s officials said. Additional liquidity is available through the Bank Term Funding Program, which the Federal Reserve announced Monday and ensures banks can meet the needs of their depositors.
“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” said Jim Herbert, founder and executive chairman, and Mike Roffler, president and CEO, of First Republic Bank. “First Republic continues to fund loans, process transactions and fully serve the needs of clients.”
U.S. Senate hopeful Rep. Barbara Lee, D-Oakland, blamed the failure of Silicon Valley Bank on the rollback of federal financial regulations by former President Donald Trump.
“Federal oversight over large corporations and our economy is crucial and regulators must once again step in and ensure we do not repeat the mistakes made in 2008,” Lee said in a statement.
Silicon Valley Bank was the 16th largest bank in the United States as of March 10, Faulkner said.
Faulkner suggests depositors open another account, if they have one with more than $250,000 in it, to protect themselves.
Silicon Valley Bank was focused on serving startups, Faulkner said, which was probably part of the reason it failed. But Faulkner said the public only knows part of the story.
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Activism
Oakland Post: Week of November 27 – December 3, 2024
The printed Weekly Edition of the Oakland Post: Week of November 27 – December 3, 2024, 2024
To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.
Black History
Emeline King: A Trailblazer in the Automotive Industry
Emeline King is recognized as the first African American female transportation designer at the Ford Motor Company. Let’s take a look at her life and career at the Ford Motor Company.
By Tamara Shiloh
Emeline King is recognized as the first African American female transportation designer at the Ford Motor Company.
Let’s take a look at her life and career at the Ford Motor Company.
King’s fascination with cars began during her childhood. Growing up, she was captivated by the sleek designs and mechanical complexities of automobiles. She loved playing with toy cars and considered it an insult if anyone gave her a doll.
King pursued her interest in cars by studying at the ArtCenter College of Design in Pasadena. There, she improved her skills in transportation design, gaining the technical expertise and artistic vision she needed to break into the male-dominated industry.
However, her true inspiration came from her father, Earnest O. King, Sr., who worked for Ford as a Fabrication Specialist. She remembered the father-daughter trips to the auto shows, and the Saturday mornings with the famous Black sculptor, Oscar Graves, who her father assisted in some of his commissioned art works.
She said Graves would mentor her in clay relief sculptures. She was always fascinated by the smell of clay that was a constant in his studio.
However, it was her first visit to her father’s job that became the catalyst for King to want a career in transportation design. At the company’s annual employee Christmas parties, she got the chance to meet his co-workers and learned about the roles they played in the auto industry. It was a chance to see some great cars, too.
Her career at Ford began in the 1980s, when women — particularly women of color –were scarcely represented in the automotive industry. King’s role at Ford was groundbreaking, as she became the first African American woman to work as a transportation designer at the company.
At Ford Design, she worked on the Ford Mustang SN-95’s interior. She also made several design contributions on other vehicles, too, including the interior components of the 1989 Thunderbird, the 1989 Corporate Steering Wheel, the 1989 Thunderbird Wheel/Wheel cover design program, the 1990 Thunderbird Super Coupe, the 1993 Mach III, the 1994 Mustang, to name a few.
King also served three foreign assignments: Turin Italy; Koln, Germany; and Brentwood, Essex, England — designing Ford cars for Europe.
Leaving Ford after about 25 years of service and along with her many speaking engagements, she wrote an autobiography about being Ford’s first female African American transportation designer titled, “What Do You Mean A Black Girl Can’t Design Cars? She Did It!”
She’s quoted as saying, “I’m now so proud to have written a book that I hope will inspire young girls and boys to never give up. To influence them so that they can stay focused and alert, and so they never look back. There are mentors who are placed in our lives to serve as our ‘Bridges to Destinations’ and allow us to cross over them to reach our dreams. Hoping they gain inspiration from my book, my motto for them is simple: ‘OPPORTUNITY IS NOW, SO GRAB IT! IF I DID IT, SO CAN YOU!”
Activism
OCCUR Hosts “Faith Forward” Conference in Oakland
The conference featured Congresswoman-elect Lateefah Simon, who will begin her term representing California’s 12th Congressional District in the U.S. House of Representatives in January.
Simon was honored with a special recognition from OCCUR for her civic and nonprofit leadership.
By Carla Thomas
The Oakland Citizens Committee for Urban Renewal (OCCUR) hosted its Faith Forward 2024 Conference on Nov. 8 at Resurrection Church in Oakland.
The conference featured Congresswoman-elect Lateefah Simon, who will begin her term representing California’s 12th Congressional District in the U.S. House of Representatives in January.
Simon was honored with a special recognition from OCCUR for her civic and nonprofit leadership. During her remarks, She commended nonprofits making a difference, and shared how she looked forward to representing Oakland and surrounding areas.
Simon also encouraged attendees to continue fighting despite their concerns about the presidential election results. She also cautioned that there may be resources that are discontinued as a result.
“We know the assignment. We have many of the resources right within our own community, and we will be ok,” Simon assured the audience.
The conference led by OCCUR president, Dr. David B. Franklin, also featured panels on funding opportunities, case studies, economic development, sustainable housing solutions, and organizing for action.
“In order for organizations serving the community to thrive, everyone must collaborate, share resources, and not operate in silos,” said Franklin.
Speakers included San Francisco Foundation CEO, Fred Blackwell, San Francisco Foundation FAITHS Program Director Dr. Michelle Chambers, and Kingmakers of Oakland Founder, Chris Chatmon. Guests were briefed on how Kingmakers of Oakland has gone from a budget of zero to several million and is set to acquire 200 acres of property to expand their programs serving young boys. The leadership at the San Francisco Foundation encouraged nonprofits, churches, and community leaders to work together, especially when donations and funding numbers are lower.
Ben Bartlett of Berkeley City Council; Trevor Parham, CEO of Oakstop; and CEO of the Lao Family Community Development, Inc., Kathy Chao Rothberg, inspired attendees with stories about their journeys in the nonprofit sector.
Additional speakers included Deka Dike, CEO of Omatachi; Landis Green, CEO of DGS Strategies; Sasha Werblin, Director of Economic Development, LISC Bay Area; Oakland City Councilmember Treva Reid; Faith and Justice Organizer of East Bay Housing Organizations, Ronnie Boyd; and Todd Bendon, Executive Director of Faith in Action East Bay; among others.
The event allowed community leaders, faith-based leaders, and nonprofits to gain Insight on how to strengthen their profits financially, and communally.
OCCUR has served the community for over 70 years supporting the wellbeing of historically marginalized communities with collaborative strategies. For more information visit occurnow.org
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