Biden Claims His ‘Quick Action’ Saved Banking Industry, Blames Trump For Banks Collapsing

[EvilCat Breath]

FFS the Democrats would blame Trump for an asteroid strike.

Because democrat fools believe it.

 

[Couchpotato]

Edit made after post. Fifteen under the Traitor and Two under Biden. I do not really Signature as a bank because the Crypto, which is not real money. But still, no outrage from the resident MAGA MAGGOTS over the number of bank failures under the Traitor. But two under Biden and the sky is falling.

If the 2 that failed last week were Trump's fault wouldnt the 15 that failed during Trump's admin be Obama's fault?

 

[0311]

I will be sure to take time in the very distant future to give a shit.

 

[Couchpotato]

I will be sure to take time in the very distant future to give a shit.

Can you take 30 seconds to be remotely educated on the things you post about? You're embarrassing the other Marines on this site with your ignorance.

 

[Care4all]

Did either one of you bother to read anything from a source not trying to score political points that explained why SVB failed?

it's mostly gibberish to me!!

Bad investments? Bonds? Bad timing? No internal stress tests??

 

[Couchpotato]

it's mostly gibberish to me!!

Bad investments? Bonds? Bad timing? No internal stress tests??

Ultimately it was a confluence of a number of factors.

1. SVB was a 60B bank 2 years ago. During the pandemic and the influx of all the money the Fed pumped into the economy much of that money went to tech companies. Many of those companies deposited that money in SVB and they grew to a 200B bank just before their failure.

2. SVB turned around and invested that money in US Treasuries (a guaranteed return) and mortgage-based securities. 2 relatively conservative investments to make.

3. The problem is when the Fed rose rates the bonds that SVB had purchased when rates were essentially zero and were used to cover the deposits they had on the books those bonds were devalued and were worth far less than when purchased them if they had to liquidate them before they matured. Basically, if you bought a US Bond for $95 last year and that bond will mature to $100 in 2 years, if the Fed raises the rates so that I can purchase a bond at $95 today that will mature to $110 in 2 years your bond is worth less than the $100 you are counting on the books if you have to sell it on the bond market.

This is only a problem if your depositors come for their money. Many other banks have this same issue, their depositors just havent asked for their money. The tech sector is notoriously volatile and when they came asking for their money and SVB didn't have it and would have struggled to raise it due to the devaluation of the bonds they had purchased word got out and the run was on. This actually puts the Fed in a precarious position. If he raises rates further to stem inflation as some are calling for he will further devalue the bonds other banks have already purchased. If he doesnt inflation may continue to run out of cotrol. It's not a good position to be in. I dont know that any of the deregulation that happened had anything to do with SVB failing. Barney Frank's bank failed in much the same way, and he wrote Dodd-Frank. Are we to believe that he wasn't adhering the policies and protections set forth in his own bill even if he weren't legally required to?

 

[Care4all]

Ultimately it was a confluence of a number of factors.

1. SVB was a 60B bank 2 years ago. During the pandemic and the influx of all the money the Fed pumped into the economy much of that money went to tech companies. Many of those companies deposited that money in SVB and they grew to a 200B bank just before their failure.

2. SVB turned around and invested that money in US Treasuries (a guaranteed return) and mortgage-based securities. 2 relatively conservative investments to make.

3. The problem is when the Fed rose rates the bonds that SVB had purchased when rates were essentially zero and were used to cover the deposits they had on the books those bonds were devalued and were worth far less than when purchased them if they had to liquidate them before they matured. Basically, if you bought a US Bond for $95 last year and that bond will mature to $100 in 2 years, if the Fed raises the rates so that I can purchase a bond at $95 today that will mature to $110 in 2 years your bond is worth less than the $100 you are counting on the books if you have to sell it on the bond market.

This is only a problem if your depositors come for their money. Many other banks have this same issue, their depositors just havent asked for their money. The tech sector is notoriously volatile and when they came asking for their money and SVB didn't have it and would have struggled to raise it due to the devaluation of the bonds they had purchased word got out and the run was on. This actually puts the Fed in a precarious position. If he raises rates further to stem inflation as some are calling for he will further devalue the bonds other banks have already purchased. If he doesnt inflation may continue to run out of cotrol. It's not a good position to be in. I dont know that any of the deregulation that happened had anything to do with SVB failing. Barney Frank's bank failed in much the same way, and he wrote Dodd-Frank. Are we to believe that he wasn't adhering the policies and protections set forth in his own bill even if he weren't legally required to?

Gosh, you explained that so well! Thank you, so much for taking the time to do that!!!

Is it a situation where these other banks with underwater bonds etc will have customers do a run on their money at the first whisper....?

The internet, social media etc could cause the word to spread so fast, even in a fake news situation, that it could cause a run on their money? Can something be done, to prevent or cool down that, from happening?

 

[Couchpotato]

Gosh, you explained that so well! Thank you, so much for taking the time to do that!!!

Is it a situation where these other banks with underwater bonds etc will have customers do a run on their money at the first whisper....?

The internet, social media etc could cause the word to spread so fast, even in a fake news situation, that it could cause a run on their money? Can something be done, to prevent or cool down that, from happening?

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[easyt65]

Biden Claims His ‘Quick Action’ Saved Banking Industry​

Yeah, and Biden claimed he was arrested on the Senate floor when he was 21yo, too...

 

[CrusaderFrank]

Is this the same Biden who claimed Putin was afraid of him?

 

[Stann]

Biden Claims His ‘Quick Action’ Saved Banking Industry, Blames Trump For Banks Collapsing | The Daily Wire

www.dailywire.com

How absolutely hilarious, for two hole years they had the opportunity to do something if this was so bad, and did nothing? Exactly like the train breaking issue!

I've been saying all the evil trump did will be haunting US for years. This is just the tip of the iceberg. What else is going to happen next Right, all those pesky regulations just got on the way of ( shoddy ) business practices. Now we realize why all those safeguards exist.

 

[easyt65]

Is this the same Biden who claimed Putin was afraid of him?

...just like Cornpop...

 

[Care4all]

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Uhhhhhhhhh.....that's a little too conspiratorial of a site for me to be comfortable with.... I tried to get in to the Financial Times article he referenced but it had a pay wall.... I'll do some research on my own, now that I understand it better, thanks to you!

 

[easyt65]

Only 1 of SVB Board Members had Investment Banking Experience.

SVB went 9 months without having a Risk Assessment CEO & once hired she FAILED miserably to assess the risk the bank faced.

Govt-created Crisis: Key to the banks collapse was the FED increasing interest rates 7 times, causing investors to want to take their money out of SVB to go to banks with higher paying interest rates...

....but its Trump's fault.

SVB's Board of Directors Packed with Democrats, Including Hillary Donor Who Went to Shinto Shrine to Pray After Trump Won in 2016 - Only One Member Had Investment Banking Experience

www.thegatewaypundit.com

 

[Frankenstein]

I've been saying all the evil trump did will be haunting US for years. This is just the tip of the iceberg. What else is going to happen next Right, all those pesky regulations just got on the way of ( shoddy ) business practices. Now we realize why all those safeguards exist.

For two hole years they had the opportunity to do something if this was so bad, and did nothing? Exactly like the train breaking issue! However Biden thought it more important to pander to environmentalists and make sure the Border was wide open!

 

[Deplorable Yankee]

Biden Claims His ‘Quick Action’ Saved Banking Industry, Blames Trump For Banks Collapsing | The Daily Wire

www.dailywire.com

How absolutely hilarious, for two hole years they had the opportunity to do something if this was so bad, and did nothing? Exactly like the train breaking issue!

 

[Frankenstein]

View attachment 765972

Ya gotta be ready, and keep your head on a swivel!

 

[Couchpotato]

Uhhhhhhhhh.....that's a little too conspiratorial of a site for me to be comfortable with.... I tried to get in to the Financial Times article he referenced but it had a pay wall.... I'll do some research on my own, now that I understand it better, thanks to you!

The guy who started zerohedge is a finance guy. His stuff on this type of issue is typically pretty good.

 

[Auld Phart]

160 of house dems voted NO, 33 in house D's voted YEA

31 DEM senators voted NO, 17 DEM senators voted YEA!

So between both houses 50 democrats in total house and senate voted YEA out of 191 democrats in total, or something like that...

You're saying it wouldn't have passed without Democrats?

 

[Pete7469]

Trump signed it, but truly it's congress critters and senators, who primarily are Republicans, who do this deregulation shit....

CORRECTION!

I WAS WRONG, TRUMP DID PUSH FOR THIS DEREGULATION.

https://www.nasdaq.com/articles/trump-deregulating-banks-heres-what-means-you-2019-02-12

Just because republicrats deregulate shit, doesn't mean elitist dipshit democrooks should take advantage and do dangerous shit. Besides that, democrooks regulate the fuck out of everything to make it harder for people to prosper unless they bribe democrook political whores to provide loop holes. Then when the loop hole results in criminal activity, you sniveling bed wetter's blame everyone else. We shouldn't have to regulate and audit every fucking exchange of value so that bed wetter's can't steal shit.