Shark Tank’s Kevin O’Leary grilled about why he kept HIS money at failed SVB when he thought the bank was run by “idiots” – just months after the former FTX spokesman revealed he’d lost $15m had when the crypto giant imploded
- Kevin O’Leary had billions of dollars in company money tied up in SVB – despite calling bank bosses “idiots” this week
- Shark Tank Star was grilled about the decision in an interview with Fox News
- O’Leary insisted he could take the hit when he slammed the government bailout
Shark Tank star Kevin O’Leary had billions of dollars of his company money tied up in the failed Silicon Valley bank – despite calling bosses “idiots” this week.
O’Leary – who also lost $15 million when crypto firm FTX imploded last year – was asked about his ties to the SVB in an interview with Fox New’s Sean Hannity on Tuesday night.
Several companies in the entrepreneur’s private equity portfolio had deposits with SVB, including his crypto firm Circle, which held $3 billion in the troubled bank.
It comes after he has repeatedly called SVB bosses “negligent” and “idiots” and asked “why should the taxpayers bail them out?”
O’Leary reiterated his claims during Tuesday night’s interview.
“This bank was run by idiots with an incompetent board of directors. It’s a bank that no one’s ever heard of,” he told Hannity.
The presenter then shot back: “Kevin you’re a smart guy. Why did you keep your money there when it was being managed by idiots?’
To which O’Leary replied, “It’s one of many, many banks where I keep my money.
“I’m a big boy. My point is, if you have more than $250,000 in any institution, you are essentially a hedge fund or a savvy investor or company.
“They understand the risks and act accordingly.
“I think the Fed’s mandate to keep the FDIC insured at $250,000 makes sense to me.
“But we changed all that at the weekend.”
SVB last week became the largest bank to collapse since the 2008 financial crisis.
This meant only $250,000 in deposits could be recovered from the Federal Deposit Insurance Corporation (FDIC).
However, the cap has been removed to protect all SVB customers – regardless of their deposit.
But O’Leary took the plunge, saying customers don’t need the money.
“Most people who had money, including me over $250,000 in my portfolio company, we can take. I get it. That happens sometimes,’ he said.
He added: “I’ve told all my CEOs in our portfolios that we don’t want to have more than 20 percent in one institution that’s so spread out across many institutions.
“Honestly, from what I see now as an investor in bank stocks, I will not invest again.
“They are basically telling me that the regulatory environment for small regional banks is going to be so strict from now on. I don’t think they can make more money.
“Remember, this is a really important issue that everyone in America needs to think about.”
O’Leary made headlines last year when he revealed he lost $15 million after the collapse of crypto firm FTX last year.
The amount was promised to him when he signed up as an ambassador for the firm, run by disgraced boss Sam Bankman-Fried, in August 2021.
But the deal was rendered worthless and bankruptcy was declared amid a series of criminal investigations into the company.
At the time, O’Leary said he was a victim of “groupthink” and admitted that FTX investors now looked like “idiots”.
‘[The] The whole deal was just under $15 million, including a bunch of agents that I had to pay,” he told CNBC at the time.
“I put about $9.7 million in crypto, I think that’s what I lost, it’s all from scratch.
“I don’t know because a few weeks ago my account was scrapped – all data, all coins, everything.
“Then I also lost the money I invested in the stock. Those are zeros too. It wasn’t a good investment.’
He added: “I obviously know all the institutional investors in this business. We all look like idiots – let’s put that on the table.
“Not a single dollar I’ve lost belongs to anyone but mine. That’s important to me because it’s an issue.”