Last week, the financial world was rocked when news broke of the failure of two banks. One of them is the Silicon Valley Bank (SVB), the tech lender worth about US$17 billion with almost US$200 billion in customer deposits.

How does a mid-sized bank with deposits from some of the world’s biggest venture capitalists suddenly collapse?

People who know a lot more than me about the financial sector are speculating about the combination of factors that could have been responsible - from the bank’s management to inflation, and the rollback of credit requirement regulations. So, I’m not qualified to even presume I have a clue about what led to the collapse.

I do want to share my thoughts about whether or not better regulations can help in forestalling similar occurrences in the future. This was the question one of my mentors posed to me about the situation. Do we need more rules and regulations in the financial sector?

Maybe. Or maybe not. “Definitely not” is a third option.

I say maybe because we’re speaking of banks and the financial sector. With tighter regulations, the confidence level of investors could be restored. In addition, it will most likely calm the volatility that this is currently causing within the stock markets. These situations will most likely apply to those who follow what’s going on closely and to people who tend to be astute with financial matters.

In my mind, it's also a “maybe not” because not everyone will be attuned to what new regulations are being passed. Some who have heard of the collapse of these banks could continue to panic and make the decision to pull out their investments irrespective of what regulators do.

Also, I believe ethics play a strong role here. There were rumors that some of the executives of SVB sold off most of their stocks just before the collapse. So, they knew what was coming and decided to save themselves.

I don’t think stronger regulations will stop people who want to cheat the system. Cheaters would always find ways to cheat. Plug some loopholes with new rules, and they will find new and better ways to locate other loopholes.

Finally, if we extend this to organizations in general, I would go with a “definitely not.” Here's why: I don't think more rules build the type of confidence that motivates people in general. Rules don’t build trust. The behaviors of those who lead do.

And I believe people will follow leaders they trust. Such trust will translate to how employees treat one another and their customers.

I believe this is truly a game-changer for any organization.

Please leave a comment about your thoughts on this. I’d love to know what you think.

At the end of one of my seminars in Orlando a couple of months ago, one of the participants (let's call him Joe) walked up to me and said, "Sunny, thank you for addressing your accent at the start of the course."

He said this to me because of how I began the class . . .

At the start of this particular 2-day class on emotional intelligence, I usually jokingly reference my unique accent. I do this because of the unconscious emotional reactions many people have to unfamiliar accents being heard the first time.

I began doing this about 5 years ago anytime I teach this class and I've received varied responses since then. But this was the first time someone had actually thanked me for doing it.

And I realized it's most likely because Joe also speaks with an accent that's unfamiliar to most North American ears.

For many who speak with an accent that's different from that of most people around them, it can create uncomfortable situations for them. This could, in turn, manifest in different ways:

Not speaking in work meetings even when they have great ideas
Refraining from engaging in discussions with coworkers

Many of these people shy away from addressing the elephant in the room because of how uncomfortable they feel. Without saying the words, it felt as if Joe was thanking me for showing him a way to handle that elephant.

If you're like Joe, remember that:

Everyone has an accent. Yours is only being noticed only because there are not many like you in that environment.
You are valuable to your company. Your ideas and contributions are important. If not, you won't have a job. So, speak up!
You speak with an accent because you most likely speak more than one language. Your diversity of background adds immense value to your team and your company.

Instead of feeling awkward, embrace your gift and uniqueness in being multi-lingual. It is estimated that between 60-75% of the world's population speaks at least two languages, so you're in the majority.

Bodybuilder Arnold Schwarzenegger was ridiculed for his accent while trying to break into Hollywood. He not only became the terminator. He was California's Governator!

You don't need to feel small or inadequate. In fact, you are more than adequate. You have something great to say and contribute to this world.

Say it in your beautiful accent!

Can Rules Build Confidence?

More Than Adequate