silicon valley bank

My point stands.

If this thing could be tied to anything specific from what Trump rolled back, the left would be parading every economist in the world out to explain very explicitly and in no uncertain terms just how that regulation rollback created this. Every Democrat politician would also be following suit. Every leftist on this board would seemingly become an economist overnight, reciting the specific regulation and acting as if anyone doesn't know that they are a functional illiterate.

That is not occurring. Instead, we keep getting explanations such as "some economists say" or "the most germane here are the limits to risky practices and maintaining a level of liquidity" which basically says nothing specific. If there were an actual limit that were rolled back that created this, your source would have been very specific and thus so would you. If there were a level of liquidity that changed that allowed this you would know that level to the exact number and how the change created this because your source would have taught you this in very explicit terms.

On top of that, when Trump rolled back regulations, those were the Dodd Frank Regulations. Well Barney Frank, the Democrat Senator whose name is on that bill and who is also on the board of directors of the one of the failed banks, says very clearly that this had nothing to do with the 2018 rollback of regulations.

Barney Frank blames crypto panic for his bank's collapse. Elizabeth Warren blames Trump. - POLITICO

"Frank said Sunday that he didn’t think changing the threshold to $250 billion from $50 billion “had any impact"

I think, if it hadn’t been for FTX and the extreme nervousness about crypto, that this wouldn’t have happened — even to SVB or to us,” he said. “And that wasn’t something that could have been anticipated by regulators.”




Barney Frank, being the literal architect of the Dodd Frank Legislation, and on the board of one of the failed banks, is the singular person who would be in position to know.

All we are getting from the so called "experts" willing to weigh in are vague generalities, and in turn, all we are getting from folks like yourself is the same vague generalities. The exact same principle is in play with the train rollover in Ohio. If that could be truly pinned to a Trump regulation rollback, that is literally all that we would be hearing. Instead they just smarmily make vague implications but never actually explain anything.

 

Trump handed Biden 1.4% annual inflation in January 2021. No one told Biden to declare war on energy on day 1 of his regime, or launch a $1.9T spending orgy which combined to almost double the inflation rate by March 2021, triple the inflation rate by April 2021 and quintuple the inflation rate by December 2021. By the time Biden took over, the flu the Obama-Biden regime funded was at the end of its cycle and there was a vaccine available for elderly and others with compromised immune systems. There was no reason to spend the $1.9T or the orgy of reckless spending that followed.
Adding insult to injury, the ESG contagion in government and industry has trains derailing, near misses by planes and now banks tanking.

 

Except they are not being bailed out. The FDIC is insuring all deposits in that bank. The shareholders and bank managers are not getting one taxpayer's dime.

When the FDIC finally turns over the bank back to private investors to choose the management, that is when the depositors are going to get screwed. Not sooner.

 

160 House Democrats voted YAY for said rolled back.

 

Except that had nothing to do with it. They've known there was trouble at svb for more than a year and did nothing. They let this thing go south so they could convince the low hanging fruit that the government needs more regulatory power. Giving it to them won't keep this from happening again the next time they want still more power.

 

It seems like there are now proposals to bail out the bank shareholders as well. That is just plain wrong and should be rejected immediately.

When you buy stock, you take a greater risk for an opportunity to get a greater return.

 

Why Trump is being called out in the Silicon Valley Bank collapse

Lawmakers on both sides of the aisle criticized the federal agencies' actions, but some Democrats seized on Trump's rollback of consumer protections in the Dodd-Frank Act in 2018 as a primary contributor to SVB's collapse. The rollback lessened scrutiny for banks with under $250 billion in assets, meaning the landmark, post-financial crisis law would only applied to a handful of big banks.
https://www.businessinsider.com/sil...apse-what-is-dodd-frank-trump-rollback-2023-3

As I said in a previous post, some Dems deserve blame as well because they voted for passage of the legislation allowing regulations and capital requirements on smaller, regional banks to be relaxed.

 

Except the architect of Dodd Frank, Barney Frank, a liberal who is also on the board of one of the failed banks and a longtime chair of the Financial Services Committee, said very specifically that this rollback had nothing to do with it. Zero. Zip. Zilch.

Doh!

 

My sister in law is a senior loan officer at a large international bank. According to her, adjusting Dodd-Frank was long overdue. Regulations cannot make banking risk free. Prudent management is also part of the mix.

This is a reflection of rapidly rising interest rates brought on by Federal Reserve policies, which were prompted to curtail inflation. If anyone is to blame, it’s the Biden administration which lowered the supply of energy and pushed for irresponsible increases in government spending which increased aggregate demand resulting in inflation.

 

1.4% inflation in 1/21 was due to economic contraction during the first year of the pandemic. Of course, all that pent-up demand, combined with government stimulus (both Trump and Biden), resulted in a glut of money in private hands, which then exploded demand in 2021. Together with the supply chain issues, inflation was the result.

BTW: With respect to interest rates, here are the European data:

I suppose that Biden's "spending orgy" causes the ECB to raise rates? Or could it be that inflation is a worldwide phenomenon, caused by similar post-pandemic woes in most developed economies?

Of course, the partisans are ALWAYS good at hindsight: Should have done this, should have done that. Yes, in hindsight, the Biden covid package wasn't a good idea. However, at the tome, we went through the largest as of yet covid wave, so there wasn't a crystal ball saying that the pandemic was over. Finally, Trump, if he has been re-elected, would have signed the 21 covid stimulus package, too. He already signaled that he would. The king of debt has never been known for fiscal responsibility.

 

Wrong they tried to make more money and since the standard means by which banks make money are federally limited they climbed aboard riskier trains crypto venture capitalism that sort thing all well and good as long as the cost of money to the banks approaches zero but the minute the interest rates go up you're screwed. They went belly up because the rules of the game changed in midstream in they were unable to adapt. The same sort of thing happened to the savings and loan industry back in the eighties.

 

This is an interesting article about SVB.
https://www.fastcompany.com/90864027/why-svb-failed-silicon-valley-bank-collapse

After reading this, I'm not convinced they or their shareholders deserve any special treatment.

 

1. Biden’s $1.9T Covid Package added gasoline to a fire.

2. I worked for Big Oil from 1981 to February 2020, and mainly as a project coordinator, and the belief that Biden’s “Day One” anti-fossil fuel Executive Orders increased 2021’s inflation rate is ludicrous.

 

And most of that inflation was due to a sudden up tick in energy costs due to Biden's attempt to shut down the American energy sector. Which by the way helped fund the initial stages of Russia's war against the Ukraine.

 

It comes back to the wisdom of management and the philosophies they embrace. If you play loosely with the the rules, sooner or later you will
pay the price.

 

I'm not suggesting they should. After all, the old rule of thumb is don't put all your eggs in one basket. If you put in excess of the FDIC covered amount in any single banking institution you are gambling that they won't get caught with there pants down at some point. And if you exceed that limit and they go belly up you deserve to lose the excess. My point is that the regulators and the government in general are as much at fault as anyone else for what's happening right now.

 

“due to Biden’s attempt to shut down the American energy sector”

False! I’m well-connected with several Texas oil buddies/production engineers, and the challenges that they faced in 2021 had nothing to do with Biden’s policies.

Also, Texas’ oil production is a reliable benchmark due to the fact that their oil producers only drill on private and state land.

 

Yep, I am sure Biden's "war on oil" made gas prices in Europe go up to Eur 2.30 per liter. That Biden devil really has his hands in the WHOLE world-wide economy.

 

That was Biden's war on energy that funded Putin's war on Ukraine. It would have been short lived because Putin would not want to impact the pipeline through Ukraine that fed Europe from his country, but the genius-in-chief dropped sanctions on the Nordstream2. When Putin expanded his war because Nordstream2 was nearing completion, able to bypass Ukraine altogether, the genius-in-chief decided to correct the problem he created by blowing up the pipeline.

Fun fact about oil is that our production tracks demand except when Biden wants to interfere in the midterms by lowering the price at the pump and does it by releasing our strategic petroleum reserve to our enemies ,,, taking their demand off the table and reducing global oil prices.

Another fun fact is that when Biden attacks US oil production, what sneaks in to take its place is Brent and garbage crude oil from Venezuela. Last I looked a while ago, Venezuela crude is so lousy that we have the only refineries that can deal with it. Our refineries will replace relatively clean WTI with garbage crude. So much for clean, green Joe.

While you're trying to prove me wrong, check out the quantity of GHGs we release into the atmosphere per $ of GDP versus the same number for China to see just how effective clean green Joe is when he encourages imports from China by making US products more costly ,,, to save the planet.

 

That would be 33 Dems.

 

In addition to the above, here was a reality that negatively affected 2021’s oil production;

Drilling company had 16 drilling rigs in their yard, 2 active. Phone call; “We need a drilling rig ASAP”…..Response; Sorry man, lots of iron, but no crews.

 

My mistake, you are correct.

 

False!!! I was on a first name basis with Jed Clampett back in the day when Democrats loved coal and hated renewable energy like nuclear and hydroelectric. Biden's war on energy would not have effected TX. No doubt the first thing you thought to ask about in discussions with 'connections' would be the Federal Government policies.

I can honestly say that I never asked friends in my parent company who designed and built offshore drilling platforms about Federal policies. But that was so long ago that Biden didn't make believe he was tolerant of blacks.

 

Are you kidding? everywhere but Texas is federal leasing including off shore and most of Alaska. Sorry bud but Texas is no more representative of the entire oil production sector than is Oklahoma.
Tell me what percentage of your wells are in tertiary or secondary production?

 

Why is Trump being blamed? Because that's what Democrats do these days. It has nothing to do with reality. In the end it's just one more lie the bureau rats are using in their quest for ever more power. Flipping cocaine is less addictive than political power.