silicon valley bank

He has to protect his rich donors.

 

the regulations are meant to reduce gambling with insured funds. if i could play with the casino's money i might be at the casino now.

 

Perhaps lack of regulations, and/or monitoring.

Do you remember the debates about the Glass Steagall Act that separated Commercial banking from Investment banking…..back then, THE MAIN REASON WHY.

Well, back then, I wondered why Canada had NO bank failures, and after several hours of research, I discovered a stunning fact; Canada’s commercial banking and investment banking HAVE NEVER BEEN SEPARATED, and ZERO bank failures during the Great Depression and Great Recession, thus, if not Steagall, then what?

Perhaps we should increase monitoring, thus, watchdogs that monitors the bank’s investment activities, and of course, they would have the powers to interfere…..“Hey, you folks are potentially making a mistake”.

 

Or just let them fail and let better banks take their place.

 

And if you could lose the casino's money and still pay yourself handsomely with the casino's money, you'd be paying yourself as well !

 

perhaps canadian bankers take their fiduciary responsibility seriously, but of i hand my money to an american businessman i want him to be required to use it as intended.

 

hell, i might even give myself a bonus.

 

Then, it is a bailout, and We, The Taxpayers better get our money back during/post-receivership.

 

What deregulation? This is the result of zero interests rates and people making risky decisions because of those rates, and you, you want to reward the people that created this disaster.

 

no, i want to prosecute the people who caused this disaster, which will, at the very least, deplete the fdic account. trump's ill conceived deregulation did not cause this, but the fraudulent bankers were aided and abetted by the fraudulent "businessman" and his minions.

 

What deregulation are you referring to? Be specific.

 

The Bank Crisis Has Democrats Scrambling Behind The Scenes To Find A Scapegoat

The Dems have found their narrative, which is an old narrative: “The conservatives did it.”

BUT, 'SVB had numerous woke investments through venture capital, including money losing ESG related projects, climate change-based companies and World Economic Forum stakeholder capitalism projects.'

'Dems are now facing a systemic stagflationary event; the same event they originally claimed did not exist. This means that any pursuit of new QE in the face of a credit crunch would lead to an immediate spike in inflation once again, crushing the middle class. '

'Are Democrats willing to accept responsibility for something like that? Not a chance.'

 

Generally, the bank regulations are designed to keep the banks from doing things which a good manager would not do anyway. The democrats may try to blame Trump, but the ultimate responsibility falls on the bank managers for not maintaining adequate researves.

 

there isn't much regulation in the form of Debt Capital Markets. Debt Capital Markets is not ESG. What SVB did was fund startups through investors as assets and then use those assets to sell bonds to fund whatever startups that were being approved. Startups were primarily tech based but could have been others. That is not ESG by definition. The bonds had low-interest rates and when interest rates began to rise due to the fed, it was a matter of time before this happened.

Basically, the Dobbs-Frank Bill did not address this because debt capital markets were not a thing then. It was a byproduct of banks working around Dobbs-Frank in an effort to increase its shareholder's wealth. So, I would say neither.

 

The 2018 Economic Growth Regulatory Relief, and Consumer Protection Act

Wikipedia

Aftermath…..

“Some banking experts said that Silicone Valley Bank would have managed its risk better had Dodd-Frank not been rolled back under President Trump”

“SCB’s Chief Executive supported the rollback due to the reduced frequency and number of scenarios required for stress testing implemented under the Dodd-Frank for banks under $250 billion in assets”

 

esg is merely investing in future industry rather than the past. if the yahoos want to call that "woke," that is not my problem.

dodd frank was always very weak regulation but was demonized by the people who do not understand that how easy the regulations were to game (by inventing new "innovative financial products" in this case, it seems, or by conspiring with favored hedge fund bozos)

of course, these crimes are very difficult to prosecute and seldom are revealed before the crash. it would help if a president would appoint regulators who were interested in doing the hard work rather than schmoozing lobbyists.

sen sanders', as former chairman of banking and liz warren's, takes on this failure should be interesting. liz is on maddow's show tonight. i hope someone posts clips.

 

The way the conservatives explain it, it had to be with "woke" and other things that conservatives are against, In essence, from their perspective, they think nonfinancial factors is what contributed to the demise, no the financial risk involved with startups and venture capital to begin with. But I want the House Banking Committee and the Senate Finance Committee to investigate why this occurred and proposed legislation that can help regulate these markets, among other things.

 

Had we started with an interstate branching system, today, we would have less than 50 banks to monitor, and all of them would be well diversified.

Same as Social Security…..had we invested our excess contributions world-wide, today, we’d be laughing.

 

Bullshit they were driven to it by batshit crazy economic policy.

 

So, Congress did that and not Trump? And the Democrats never did put those regs back in place?

Meanwhile on planet Earth, there were more immediate factors at play...

https://www.marketwatch.com/story/s...was-no-match-for-powells-hawkish-fed-1a53c25a

 

exactly. trumpanomics is batshit crazy. the svb executives did what banker's do : rob their own bank.

 

meanwhile, back in our own multiverse. capitalists did what capitalists do : gamble with opm
(" other people's money." )

 

Biden intends to make his wealthy buds whole by taxing banks that haven't failed yet. At the end of 2022, banks were sitting on $620B in unrealized losses in their bond portfolios. I don't think the regime is done melting down the economy.

 

Democrats love to plagiarize British politicians ,,,
“The problem with socialism is that you eventually run out of other people's money.”

― Margaret Thatcher

 

In this case, the government has decided to cover all deposits, even those in excess of the $250K. They want to stop the run on banks and are afraid that other companies in the tech sector would fail otherwise as they cannot access the money to cover payrolls. https://www.cnn.com/2023/03/12/investing/svb-customer-bailout/index.html