Hawaii
In his first public appearance since SVB’s collapse, former CEO Greg Becker is asked to defend trip to Hawaii and whether he’ll forfeit $1.5 million bonus
There were plenty of people in the room on Tuesday during the Senate hearing about bank failures who agreed that former SVB CEO Greg Becker was to blame for SVB’s failures, but Becker sure did not seem to be one of them.
Bipartisan fire was directed at Becker and two executives from Signature bank as senators questioned the executives about their decision making leading up to the bank runs in mid-March. Becker reiterated that he believed there was a unique amalgamation of factors including rising interest rates and media attention on the bank. Becker, when asked, didn’t pinpoint any specific decision he would make differently looking back.
On March 9, $42 billion in deposits were withdrawn in a single day from SVB after it became clear that the bank had suffered huge unrealized losses in its loan portfolio due to rising interest rates. Becker argued that the bank run was the central root cause of the bank’s failure. “I do not believe that any bank could survive a bank run of that velocity and magnitude,” Becker said.
During the two hour hearing, Becker explained that he partially blamed the media for its coverage of SVB and said that a herd mentality set off a bank fun that ultimately led to the bank’s demise. “Silvergate’s failure and the link to SVB caused rumors and misconceptions to spread quickly online, leading to the start of what would become an unprecedented bank run,” Becker explained.
Yet the senators pushed him to acknowledge that executive mismanagement was a factor in SVB’s failure. “It’s hard to believe a 30 year bank executive and CEO for 12 years should have needed a roadmap from the regulators to define the obvious problems that needed to be fixed and weren’t,” said Sen. Sherrod Brown of Ohio, who is the chairman of the Senate banking Committee. In response to questions about why SVB lacked a chief risk officer in the eight months before the bank run, Becker argued that they were in the midst of a search for a qualified candidate. He acknowledged that regulators had pointed out flaws in SVB’s balance sheet, but said that he was in the process of working with regulators when the bank run happened. “[I] strongly believe that the leadership team and I made the best decisions we could with the facts, forecasts and outside expert advice available to us at the time,” he explained. “I believe we were responsive to the regulator’s feedback,” he added.
Becker was also put on the hot seat regarding executive compensation. He earned nearly $10 million in 2022, although he explained it was part of a compensation package that would have been paid out over a few years, and added that much of his compensation was held in stock that was wiped out. Sen. John Kennedy of Louisiana accused Becker of neglecting to reorganize its loan portfolio to adjust for rising interest rates because it would have lowered Becker’s bonus. Becker denied these claims, arguing his compensation package was long term. Multiple senators asked Becker if he was keeping his $1.5 million bonus he received in 2022, to which he said he would comply with regulators if they seized the bonus. Becker denied that he acted on non-public information when he cashed out some of his stock options in the weeks before SVB fell.
Senators seized on the sentiment that similar to the 2008 financial crisis, big banks were bailed out while working class Americans bore the brunt of executives failures. In a tense exchange. Sen. Raphael Warnock of Georgia asked Becker if he considered “ordinary folks” when conducting his business at the bank. “They don’t they don’t have the high class problem of $10 million over a few years, did you consider them when you were making your decisions?” Warnock asked.
While Becker said he took responsibility for the bank’s failures, senators were clearly frustrated that he could not point to a fatal wrong decision on his own part. Senators brought up a trip to Hawaii Becker took after the bank run and Sen. John Fetterman asked Becker whether he thinks the same policies that apply to working class Americans should apply to him. “Shouldn’t you have a working requirement after we bail out your bank? Republicans seem to be more preoccupied with SNAP requirements for hungry people than protecting taxpayers that have to bail out these banks,” Fetterman said at the end of the hearing, to which Becker did not reply.
Hawaii
Jonathan Okamura: Alarming New Report On Hawaii Public Schools Is One More Sign Of Legislative Failure
The Kids Count Data Book for 2024 was recently issued by the Annie E. Casey Foundation based in Baltimore, which has been reporting on the well-being of American children and their families since 1990.
For those like myself who advocate for ethnic equality in Hawaii and support public education as one of the principal means for its attainment, the report’s findings are distressing, although they are not necessarily surprising or new.
The report indicates that Hawaii’s public school students are not faring well academically in attaining basic skills such as reading and math and even just showing up for classes.
While most of the report’s data is not broken down by ethnicity, I’m certain that there are significant differences in educational performance among ethnic groups in the public schools because such disparities are evident in other areas of educational attainment, such as undergraduate representation at the University of Hawaii Manoa.
Since the report is concerned with the educational achievement of K-12 students who have yet to enter the job market, its findings clearly demonstrate the perpetuation of ethnic inequality for another generation due to the ongoing failure of the Legislature to fix the chronic teacher shortage problem.
Indigenous and ethnic minority students represent about 70% of those in the public schools.
The Number Of ‘Chronically Absent’ Skyrockets
In the Kids Count report, what I found most troubling was the 39% of Hawaii students who were “chronically absent,” which means they missed 10% or more days of school in 2022. The DOE school year is 180 days, so these students were absent at least 18 days or about three and a half weeks.
The 39% figure represented more than a doubling from the 19% in 2019, prior to the pandemic, which may have had an impact on the huge increase. It can be assumed that chronic absenteeism negatively impacts a student’s ability to proceed to the next grade level and ultimately to graduate from high school and enter college or the job market.
This is one area where the report did break down its data by ethnicity. It found that 59% of Native Hawaiian and Pacific Islander students, including Micronesians, Samoans and Tongans, were chronically absent in 2022.
A figure that high, a clear majority of those students, indicates that they probably are also well represented among the 14% of Hawaii students who did not graduate on time, according to the report.
Legislature’s Misplaced Priorities
I will cite information from Waianae High School, not to belittle its students, but because more than $6 million in funds were recently appropriated by the Legislature. One might assume that those funds are going to be used to address the school’s long-term chronic absenteeism problem, but one would be wrong.
Of Waianae’s 1,900 students, 54% are Native Hawaiian or Pacific Islander, 8.7% Asian, 3.3% Caucasian and 22% Hispanic.
According to the DOE Strive Hawaii report on the school’s academic performance in 2021-2022, Waianae had a graduation rate of 81%, which refers to the percentage of 12th-graders who graduated on time with their classmates.
As for being chronically absent, in 2022, 58% of Waianae students missed 15 or more school days, which might be attributable to the pandemic’s after-effects, but the state average was much lower at 32%.
Despite those troubling statistics in the DOE Strive report, Rep. Cedric Gates, a Waianae graduate, announced funding last week for building a new artificial-turf football field at the school. Gates, who represents Waianae and nearby communities in the Legislature, led the $6 million legislative initiative.
He told a television news reporter, “It’s so important to get Waianae High School up to the same standards as the other high schools in the state,” but he wasn’t referring to academic standards, such as increasing its graduation rate or its college-going rate of 28%.
Gates continued, invoking the arguments used to support race-based affirmative action programs in college admissions as leveling the playing field, but literally referring to athletic fields: “It gives us a fair playing field to compete with the other schools because when you’re competing on grass and you’re transitioning over to a school with turf, it’s just a different field.”
Which Playing Field Do We Really Want To Even?
The $6 million Waianae High School received could have been used to hire more fully licensed teachers, instead of relying on unqualified emergency hires, or additional counselors to keep students on track to graduating on time or to urge them to take Early College courses available on campus.
Those teachers and counselors could have encouraged and supported more of their students to proceed on to college at UH Manoa, UH West Oahu, Leeward Community College or elsewhere so that they can compete fairly in the job market and not just in football.
Since only 13% of the Waianae community has a college education, teachers and counselors, rather than parents, can play a major role in their students’ further education.
Hiring more DOE staff to fill vacant positions obviously was not the policy priority of the Legislature.
Some might counter that the community wanted a new football field, and legislators responded positively to their wishes. But lawmakers don’t necessarily provide their constituents what they desire, such as publicly funded election campaigns that are supported by a majority of Hawaii voters.
Hiring more DOE staff to fill vacant positions obviously was not the policy priority of the Legislature, which instead allocated almost $600 million this past session for school facilities, including Waianae’s new football field.
While such new facilities won’t be completed before the primary and general elections, photos of groundbreaking or signing ceremonies for them with the governor can be prominently displayed in a legislator’s campaign advertisements and website.
Those ads reveal the personal priorities of many but not necessarily all legislators — to get themselves reelected rather than to address their constituents’ needs and desires for a more equitable and rewarding future for their children.
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Hawaii
Southwest under investigation after Hawaii flight quickly drops within 400 feet of ocean
HONOLULU (HawaiiNewsNow) – The FAA is investigating a Southwest aircraft bound for Lihue suddenly dove 4,000 feet in a minute just 400 feet above the ocean.
Bloomberg News reported the incident first and said the plane came within 400 feet of falling into the ocean.
On April 11, the aircraft headed for Lihue ended up flying back to the Daniel K. Inouye International Airport.
Retired Pilot Patrick McNamee analyzed the flight map on Flight Aware and said weather conditions made it difficult for the plane to land safely on Kauai.
“So, they could only descend to 400 feet off the water in order to take a look to see if they can get in. In this case, they descended 400 feet, they could not find, or they couldn’t see through the clouds to land,” said McNamee. “So, they went around, and I think that scared the passengers.”
A Southwest memo to pilots said a less-experienced first officer inadvertently pushed the control column forward, then cut the speed, causing cockpit alarms to go off before the captain ordered an aggressive climb.
“I don’t believe that anything was unsafe in this. It might have been a little aggressive, but when you do go around in an airplane, you use full throttle, and it’s like taking off again,” said McNamee. “So here you are coming, coming in for a landing, descending, and when you can’t see the runway, you have to go around; when you have that power, it’s a very, very aggressive feeling.”
“It pushes you back in your seat, the nose goes up, and it climbs away from the ground,” McNamee said. He can see how that could have contributed to the scare factor.
However, there have been other incidents that have made people hesitant to fly.
In 2022, eleven people were seriously injured on a Hawaiian Airlines flight from Phoenix to Honolulu following severe turbulence.
“After hearing about that one, I’ve been more conscious of making sure I have my seatbelt even when I’m just sleeping on the plane,” said Brenna Cregge of Mililani.
In a separate flight, a United Airlines flight made a steep dive after taking off from Maui’s airport.
Southwest released the following statement.
Nothing is more important to Southwest than Safety. Through our robust Safety Management System, the event was addressed appropriately, as we always strive for continuous improvement.
Copyright 2024 Hawaii News Now. All rights reserved.
Hawaii
Southwest flight makes “excessive descent” during go around in Hawaii | Flightradar24 Blog
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