Predictably, the failure of Silicon Valley Bank has triggered the usual chorus of cries that “deregulation” is the culprit. In other words, investors just had too damned much freedom, presumably, to commit financial suicide. In some circles, this goes as far as to name Donald Trump as the orchestrator of the collapse.
The collapse of Silicon Valley Bank and other similarly sized banks in recent days has put a spotlight on Congress’s 2018 bipartisan banking deregulation law, which was signed by then-President Donald Trump.
I have yet to see one solitary explanation of what regulatory measure would have prevented the collapse, other than to have impossibly perfect foresight. No one can yet explain what kind of hedging mechanism would have worked in this case or by what means. After getting the smear campaign out of the way, the author can’t answer these questions either and basically throws in the towel:
It’s not clear that more oversight would have foreseen those problems and mitigated SVB’s risk exposure. But it probably wouldn’t have hurt.
I see that pesky “bipartisan” word in there
Watch for my memoir, “Bipartisan: A Pervert in the French Resistance”, coming soon!
Gee, they made it sound like it was Trump’s Executive Order which caused the deregulation.
Rather than having gone through the House and then the Senate with approval.
Not only that … but they imply there is NO regulation whatsoever! Utter nonsense, and BTW … the Federal Regulators didn’t do their jobs … but that’s pretty much business as usual … FAIL at your cushy, high-paid government job … then blame the nearest Republican
And then promoted upward for your “service”.
There isn’t one, but it’s a convenient way to blame Trump.
Just like the Train crash
“We don’t know what caused your adverse event but we know it WASN’T the vaccine.”
“We don’t know what caused the bank collapse but we’re sure it was DONALDJTRUMP.”
And about half of climate change companies in the U.S. banked at SVB….which is the reason why the Biden administration is bailing them out even though the insured deposit limit is 250K. Just bail out after bail out after bail out for the “climate change” industry. What a bloody fraud….almost as bad as the Moderna gong show that is now going on.
Given that many of them were forced to bank there as part of the terms of their loans, I expect that they will get bailed out on their deposits and then the loans may or may not be recovered
Scanned a headline a moment ago.. There is some chinneee stink on some of these wonky banks.. Who saw that comming.
When it comes to government regulation “it probably wouldn’t have hurt” is a non-sequitur.
ESG
How long before RhondaSantis’s handlers have him join the chorus of the leftists blaming Trump for the banking collapse? 3-2-1 …
Please do it Rhonda! Every time you open your mouth Trump widens his lead in the polls. Keep talkin Rhonda.
“I’m from the government and I’m here to hump you.”
– Federal bank inspector
The Trump Grand Jury listened to Robert Costello tell the truth on Monday, and DA Alvin Bragg decided to call in sick for the rest of the week.
https://ace.mu.nu/archives/403679.php
The walls are no longer closing in.
Now what will Rhonda do? He was promised by his GOPe handlers that Trump would be in jail … and out of the way. Now he’s going the way of low-energy Jeb.
The failure of SVB can be blamed on:
1. CFO – top financial person in the company
2. CEO – the top executive who is responsible for everything
3. Board of Directors – who provided no oversight on SVB’s emerging financial problems
The failure of SVB cannot be blamed on:
1. Donald Trump
2. The auditors
3. The FED which raised interest rates
4. Aliens
It’s a right of passage in US politics. JFK, Bill Clinton, Donald Trump. But it wouldn’t fly in Canada. We are too hypocritical.
Rob Ford.
There is personal life, then there are policy platforms.
What if Trudeau got a HS drama student pregnant? Would you still vote for him?
I like this answer better:
https://tomluongo.me/2023/03/21/fdic-insurance-credit-suisse-day-fed-killed-europ/
Dodds-Frank (opposed by the GOP) prevented the fed from handing SVB a lifeline by extending credit during the run on the bank that triggered the default. Idiocy, long term and deeply committed idiocy, got them into trouble; the regulator stopped them getting out. (The entire bailout is an executive override on the regulations – technically illegal.)
Odd thought: a $250K insured deposit limit made sense when the dollar was worth more.. probably should be at least twice that now.