Every time Congress creates regulations to help prevent banks from failing, banks lobby Congress to change regulations so they have more freedom, and it is inevitable that more banks will fail with looser regulations.
SVB was one of the Banks that lobbied Congress to change the regulations, which Congress passed and Trump signed. Before 2008 it was Clinton that was president when regulations were loosened.
Wash, rinse, repeat.
It is only a partisan issue if framed as a partisan issue. Yes both parties created legislation that probably impacted SVB's bankruptcy.
There will be no playoffs. Can’t play with who we have out there and compounding it with garbage playcalling and worse execution. We don’t have good skill players on offense period. Browns 20 - Bears 17.
When Barney Frank Said It Was OK for Democrats to Deregulate Banks, He Was Getting Paid by a Bank BY JOSH VOORHEES MAY 25, 201811:29 AM
Donald Trump on Thursday signed into law bipartisan legislation loosening some of the key provisions of the post-financial banking rules known as Dodd-Frank. The House had passed the legislation a couple days before, but this story begins more than two months earlier, as the deregulation push was picking up steam in the Senate. Given Republicans’ narrow majority in the upper chamber, the effort would have quickly petered out if not for the support of more than a dozen moderate Democrats who signed on early.
Those Democrats argued that Dodd-Frank went too far when it came to regulating community and regional banks, and that easing a few rules would free up credit for rural areas and small businesses. And to make their case, again and again, they cited one man in specific: former Democratic Rep. Barney Frank, one of the 2010 bill’s chief authors, who argued that despite fears from the left—as well as his own opposition to a different provision in the bill, which could hurt black homebuyers—the top-line changes were of no real concern and didn’t put us any closer to another financial crisis. If Frank was OK with the rollback, their argument went, everyone else should be too. Frank agreed.
But the problem, as the Washington Post documented Thursday, was that what went largely unnoticed or unsaid as Frank was providing those Democrats cover was that he also sits on the board of a New York-based financial firm that stood to gain from the very changes he was defending:
Dodd-Frank imposed additional regulatory safeguards on banks with more than $50 billion in assets, but the rollback that passed this week, among other things, raises that threshold to $250 billion. Signature Bank has more than $40 billion in assets and can now grow significantly without automatically facing additional regulation. Frank has served on Signature’s board for three years and has received more than $1 million in payments from the bank during that time.
For Frank’s part, he acknowledged to the Post that Signature will likely benefit from the new law, but said that had nothing to do with his thinking. And the paper did find evidence to support the idea that Frank was in favor of raising the threshold to a lesser degree while he was still in Congress. Still, it stands to reason the fact he was getting paid by the bank at the same time he was going on TV to defend a bill that would help that bank was something that was relevant to the debate.
Thankfully, progressive president FDR passed 'socialist' policies, so at least those who could least afford to lose for simply trusting a bank with their money won't take the hit, or else we'd still be hiding our money in mattresses or jars in the ground. I bet even Trumpian depositors will be happy about that.
Your feelings and opinions do not add up to facts.
With the additional bank news today, this could be as bad as 08 by the time it plays out. Some days it seems like all of our systems are so delicate that the slightest change permanently alters lives, and nobody knows what the right next move is to keep the whole house of cards from toppling down.
Your feelings and opinions do not add up to facts.
Share By Riva Gold, Editor at LinkedIn News Updated 4 hours ago
Ratings agency Moody’s has downgraded its outlook on the U.S. banking system from “stable” to “negative,” following the failures of Silicon Valley Bank, Signature Bank and the crypto-focused Silvergate Bank. The move reflects the “rapid deterioration in the operating environment,” Moody’s said, adding that other banks with unrealized losses or uninsured depositors could be at risk despite government efforts to shore up the sector. Moody’s on Monday put six regional banks — including First Republic and Western Alliance — under review for possible downgrades.
Shares of First Republic and Western Alliance Bancorp dropped a record 62% and 47%, respectively, on Monday. They regained some of those losses Tuesday. Many investors now expect central banks to slow their interest rate increases. Accounting giant KPMG faces possible scrutiny after auditing SVB two weeks before its collapse.
Blocking those who argue to argue, eliminates the argument.
Dow futures fall 500 points as Credit Suisse slide adds to financial sector woes: Live updates
Stock futures fell on Wednesday as pressure on the financial sector increased with shares of Credit Suisse, a Swiss Bank that has large U.S. and global operations, tumbling more than 20%.
Futures tied to the Dow Jones Industrial Average fell 567 points, or 1.8%, while Nasdaq-100 futures lost 1.6%. The 1.9% slide in S&P 500 futures put the broad index’s 2.1% year-to-date gain at risk.
Blocking those who argue to argue, eliminates the argument.
Share By Jake Perez, Editor at LinkedIn News Updated 42 minutes ago
Credit Suisse shares fell more than 20% Wednesday, after its top shareholder, Saudi National Bank, told Bloomberg that it would not invest further in the bank. In the wake of Silicon Valley Bank's collapse, the scandal-ridden Swiss bank's latest guidance Tuesday didn't inspire confidence among investors and customers. Its 2022 annual report identified "material weaknesses" in internal controls of its financial reporting. The report had been delayed following concerns expressed by the Securities and Exchange Commission over its previous financial statements.
Credit Suisse recently reported its biggest loss dating back to the 2008 financial crisis. Its executive board will not receive a bonus for the first time in more than 15 years. CEO Ulrich Koerner nonetheless maintains the bank's "complex" restructuring efforts will help put it back on the road to profitability.
Blocking those who argue to argue, eliminates the argument.
It looks like many fat cats' chickens are coming home to roost. It sucks that so many working people will again be hurt by blatant greed and ignorance. The only upside to this is it might cause some prices to start falling soon. A good scare where people don't spend money like water for a minute would do wonders for the failed logistics issues and inflation. But this is inching towards another 08 imo.
Your feelings and opinions do not add up to facts.
