• AML
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • FAQS
Demand Protections for Artificial Intelligence Whistleblowers | Take Action!
Subscribe
Donate
Get Help
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
Whistleblower Network News
No Result
View All Result
Home Corporate SEC

Whistleblower Advocates See Parallels to Enron in Silicon Valley Bank Collapse

Geoff SchwellerbyGeoff Schweller
March 23, 2023
in SEC
Reading Time: 3 mins read
Silicon Valley Bank

Jan 31, 2020 Santa Clara / CA / USA - Silicon Valley Bank headquarters and branch; Silicon Valley Bank, a subsidiary of SVB Financial Group, is a U.S.-based high-tech commercial bank

Share on TwitterShare on FacebookShare on LinkedInEmail

According to whistleblower advocates, the recent collapse of Silicon Valley Bank (SVB) is reminiscent of the collapse of Enron in 2002. Given the role Enron whistleblower Sherron Watkins played in exposing Enron’s accounting malpractice, advocates are pointing to the SVB collapse as a potent reminder of the importance of corporate whistleblowers.

“In light of the parallels between the Silicon Valley Bank collapse of 2023 and the fall of Enron in 2002, it’s important to be informed about the downfall of Enron and the employee, Sherron Watkins, who helped put an end to the corruption taking place within the massive corporation,” said Siri Nelson, Executive Director of the National Whistleblower Center (NWC).

“With the news of the Silicon Valley Bank collapse that occurred this year, it’s important to reflect on the importance of shining light on the corrupt practices of big banks and corporations, and taking strides to hold them accountable for their wrongdoing,” Nelson continued.

Register for National Whistleblower Day Register for National Whistleblower Day Register for National Whistleblower Day

“Watkins’ actions helped obtain a level of public accountability and justice that may not have occurred without her inside knowledge. While no whistleblowers have publicly come forward regarding this scandal, it’s important to recognize the role whistleblowers play in upholding accountability at large.”

Watkins, WNN’s Senior Fellow for Ethics and Policy, was Enron’s Vice President when she wrote a now-infamous memo in the summer of 2001 to then-CEO Kenneth Lay warning him about improper accounting methods. Following the collapse of the company, Watkins was called to testify before both the U.S. House of Representatives and Senate about the accounting irregularities that she had found in the financial statements.

Watkins’ whistleblowing had far-reaching policy implications. It highlighted the glaring lack of protection for Wall Street whistleblowers and became one of the driving forces of the Sarbanes-Oxley (SOX) reforms. SOX ultimately laid the groundwork for the Dodd-Frank Act years later, which established the highly successful SEC Whistleblower Program.

In October, Watkins penned an op-ed published in The Hill highlighting the importance of the SEC Whistleblower Program amidst fears of an economic recession. While the piece predates the collapse of SVB, its arguments ring even more true in light of the economic worries surrounding the collapse.

“History proves that fraud increases as the country experiences a downturn in the economy,” Watkins writes. “Can we actually afford, literally, to do less to prevent fraud? The SEC’s whistleblower program is the agency’s most effective tool at rooting out fraud, but attempts to weaken the law will undermine future justice from being served to those who attempt to defraud.”

Earlier in March, Wakins joined alongside a group of other whistleblowers to launch a campaign calling for the permanent establishment of National Whistleblower Day. The whistleblowers are urging President Biden to sign an Executive Order permanently designating July 30 as National Whistleblower Day and requiring all federal agencies to recognize the day.

Further Reading:

Sunday Read: Silicon Valley Bank Collapse, Echoes of Enron

Sherron Watkins Highlights Importance of SEC Whistleblower Program

Whistleblowers Launch Campaign to Make National Whistleblower Day Permanent

Tags: Corporate Whistleblowers
Previous Post

Whistleblower Jóhannes Stefánsson Plans to Testify at Fishrot Trial in Namibia

Next Post

WNN Exclusive Interview with Social Security Whistleblowers Sarah Carver and Jennifer Griffith — Part 2

Geoff Schweller

Geoff Schweller

Geoff Schweller is the Assistant News Editor for Whistleblower Network News. He coordinates news coverage, and also writes about breaking whistleblower news, SEC whistleblowers, IRS whistleblowers, CFTC whistleblowers, and federal employee whistleblowers. Geoff graduated from Hamilton College with a degree in Sociology and minors in French & Francophone Studies and Cinema & New Media Studies.

Next Post
Courtesy of Sarah Carver and Jennifer Griffith

WNN Exclusive Interview with Social Security Whistleblowers Sarah Carver and Jennifer Griffith — Part 2

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

Whistleblower Advocates Take Issue with New York’s Policy of Favoring Arbitration

Whistleblowers to Receive Up to $920K after Alleging Fraud in Breast Cancer Testing

Supreme Court Upholds, For Now, Trump Firing of MSPB Chair

Whistleblower Suit Leads to $3.3 Million Stark Law Settlement

Paper Outlines Founding Father’s Warnings As Trump Goes After Key Whistleblower Appointees

Whistleblower Receives $5 Million for Exposing California Health System’s Alleged Kickback Scheme

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • Rules for Whistleblowers
  • Frequently Asked Questions
  • Advertise
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments.

Submit an Article

Copyright © 2025, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN
Join the Waitlist for National Whistleblower Day 2025! July 30, 2025 on Capitol Hill
JOIN WAITLIST

Add New Playlist

Demand Protections for Artificial Intelligence Whistleblowers

Take Action!
No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Make National Whistleblower Day Permanent
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook

Copyright © 2024, Whistleblower Network News. All Rights Reserved.

Go to mobile version