https://newrepublic.com/post/171105/trump-rollback-dodd-frank-regulations-directly-led-silicon-valley-bank-failure
As I correctly stated many times here, it will take years and billions of dollars to undue the damage he caused America.
https://newrepublic.com/post/171105/trump-rollback-dodd-frank-regulations-directly-led-silicon-valley-bank-failure
As I correctly stated many times here, it will take years and billions of dollars to undue the damage he caused America.
Another conservative small government deregulation success story.
At the urging of the Fed SVP was overexposed on Fed 30 year bills. When interest rates shot up they were in trouble as their value declined every time interest rates went up.
Not Trump's fault that rates went up
Most of the funds in the bank were not covered by the FDIC. The rich depositers, mostly corporations and venture capitalists, have demanded a federal bailout and the government has granted their request. We do not practice capitalism in this country. Capitalism is for the little folks while socialism is available at anytime for the wealthy including those times when their greed led them to make bad financial decisions.
We privatize the profits and socialize the losses.
They would have failed the Dodd- Frank stress tests that were instituted after the 2009 banking collapse which allowed the government to audit the investments and leveraged accounts of the bank. SVB did not diversify its investments choosing instead to put all its eggs in one bucket. Thats something the big, evil government would have caught had they been within its oversite.
But Republicans and Trump thought that was too mean. So now we get another failed bank.
Originally posted by: tom
At the urging of the Fed SVP was overexposed on Fed 30 year bills. When interest rates shot up they were in trouble as their value declined every time interest rates went up.
Not Trump's fault that rates went up
It's Trump's fault that they weren't able to handle it when rates went up. The "overexposure" you mention wouldn't have been allowed under Dodd-Frank, WHICH TRUMP DESTROYED.
Idiot.
Trump said the bank failed because it was "woke." 😂 What a 💩 for brains.
With the rapid increase in interest rates, you are assuming the auditors would have been able to get into the bank in time to determine that they were in trouble.
At the end of the day it was the incompetence of the management to leave themselves exposed & the Fed for presssuring the bank to buy long term Fed bonds.with low interest rates.
Coming down the pike all the banks with the 3% mortgages portfolios, as they have to pay 4%+ to get new money.
Originally posted by: tom
With the rapid increase in interest rates, you are assuming the auditors would have been able to get into the bank in time to determine that they were in trouble.
At the end of the day it was the incompetence of the management to leave themselves exposed & the Fed for presssuring the bank to buy long term Fed bonds.with low interest rates.
Coming down the pike all the banks with the 3% mortgages portfolios, as they have to pay 4%+ to get new money.
And the regulations that tRump removed would have stopped the imcompetent management from doing just that.
Much like tRump's train regulations he removed.
Thanks tRump.
