Trump-Era Deregulation Deemed a Key Culprit in the Failure of Silicon Valley Bank

[RobDownSouth]

Washington Mutual didn't fail either and was sold to JP Morgan Chase.


This only proves that the Fed owns the banking system and the various banks are just shell entities of FedGov Bank.

"Didn't fail"?

Washington Mutual failed on September 25, 2008 and was placed into receivership by the FDIC. The FDIC absorbed the unsecured losses of WAMU and sold WAMU's remaining assets (mainly physical locations) to Chase, and WAMU subsequently declared bankruptcy the next day.

At the time. it was considered the largest bank failure in American history.

 

[Lazaran]

William D. Cohan on Amanpour & Co. last night made it quite clear that the 2018 deregulation was the primary catalyst for the SVB scandal and the Signature Bank scandal.

Hope that ^ helps the deniers.

 

[BabyBoomer50s]

What Congress Should Ask Regulators in SVB’s Aftermath

“SVB’s failure wasn’t related to regulatory changes. Rather, it was a ‘textbook case of mismanage-ment,’ as Michael Barr, the Federal Reserve’s Vice Chairman for Supervision, said Monday. The bank failed as the public began to focus on changes in the value of securities in the bank’s “held to maturity” account. The 2018 law didn’t change the capital treatment of such securities. SVB didn’t have a capital shortage—it remained solvent. Instead, it succumbed to a bank run. Thus the focus of any critique should be on liquidity, not capital.”

“But even applying to SVB the full-strength liquidity rules governing our largest banks wouldn’t have changed its fate. Those rules, first established in 2014 as mandated by Dodd-Frank, impose the toughest restrictions on banks with large amounts of short-term wholesale funding and treat banks funded with deposits from their customers—even uninsured deposits—as being reasonably resistant to runs. That treatment was crafted by the Obama-era regulators and hasn’t been amended.”

”Another misconception is that the changes in stress testing might have blinded the bank and its examiners to problems. That, too, isn’t right. Banks of all sizes are subject to a range of stress tests, not merely one. Most of these weren’t affected by the 2018 changes—and the longstanding requirement for banks to run tough internal stress tests on their interest-rate-risks remained untouched.

https://www.wsj.com/articles/querie...iscal-policy-interest-rate-risk-2018-8f48edc7

 

[jaF0]

Fed official: SVB itself was main cause of bank's failure​

https://external-content.duckduckgo.com/ip3/abcnews.go.com.icoABC|23 hours ago
The nation's top financial regulator is asserting that Silicon Valley Bank's own management was largely to blame for the bank's failure earlier this month and says the Federal Reserve will review whether a 2018 law that weakened stricter bank rules ...

 

[Lazaran]

As William D. Cohan and others have made quite clear, the mandated EXTERNAL oversight eliminated by the republican’s and the corrupt orange traitor’s deregulation left only SVB’s INTERNAL oversight to monitor its own operations.

That ^ is a classic case of leaving the Fox to guard the Henhouse.

SVB’s CEO lobbied the government to end mandated EXTERNAL oversight while citing SVB’s INTERNAL oversight.

That ^ is a classic example off a kid in a candy store saying “trust me”.

JFC

SAD!!

 

[Lazaran]

Fed official: SVB itself was main cause of bank's failure​

https://external-content.duckduckgo.com/ip3/abcnews.go.com.icoABC|23 hours ago
The nation's top financial regulator is asserting that Silicon Valley Bank's own management was largely to blame for the bank's failure earlier this month and says the Federal Reserve will review whether a 2018 law that weakened stricter bank rules ...

From the article:

“The 2018 law exempted banks with assets between $100 billion to $250 billion — Silicon Valley’s size — from requirements that it maintain sufficient cash, or liquidity, to cover 30 days of withdrawals. It also meant that banks of that size were subject less often to so-called “stress tests,” which sought to evaluate how they would fare in a sharp recession or a financial meltdown.

Simon Johnson, an economist at the Massachusetts Institute of Technology who co-wrote a book about the 2008-2009 financial crisis, said he believed the 2018 regulatory rollback “contributed to a big relaxation of supervision and fed into this lackadaisical attitude around Silicon Valley Bank.’’

Hope that ^ helps deregulation apologists like BabyBoobs.

BabyBoobs

 

[jaF0]

Silicon Valley Bank CEO slammed by senator for 'really stupid bet'​

https://external-content.duckduckgo.com/ip3/abcnews.go.com.icoABC|17 minutes ago
Senators from both parties slammed former Silicon Valley Bank CEO Greg Becker at a hearing on Tuesday, accusing him of mismanagement that they say was fueled by short-term profits and the millions he stood to gain in compensation.


Ummm, duh!!!!