Forbes Magazine: How Trump’s Deregulation Sowed The Seeds For Silicon Valley Bank’s Demise

[Frankenstein]

SVB failed because of its uberliberal policies. Time for Sleepy Joe to institute new regulations banning progressive thought and actions in the banking sector, regardless of the size of the institution.

Yep they were an ESG driven bank!

 

[citygator]

No worries. Rich people safe:

 

[Nostra]

In 2018 Trump and the GOP spearheaded the move to deregulate banks (they took major mega campaign donations from these banks including SVB).

A few years later, small bank SVB, goes under because they made risky stupid moves brought on by Trump's policy.

If we had real campaign finance reform then republicans would never win another election and all the major problems in America would be solved (drug prices anybody).

Bernie Sanders says Silicon Valley Bank's failure is the 'direct result' of a Trump-era bank regulation policy

Sanders said a Trump-era bill was to blame for the SVB bank run. The 2018 law rolled back bank regulations and eased rules on most mid-sized banks.

www.businessinsider.com

SVP failed because of rampant Bidenflation, Dumbass.

Inflation was 1.4% when the Vegetable took office.

 

[Nostra]

No worries. Rich people safe:

Thanks to your Vegetable Messiah.

BAILOUTS FOR THE SUPER RICH!

 

[LeftofLeft]

Just a question,

If the bank (management) were acting in such irresponsible ways, where were the regulators?

According to some on this board, they were still hindered and otherwise handcuffed from Trump policies two years ago.

 

[Missourian]

Barney Franks of the highly touted "Dodd-Franks" Bill was on the board of one of the two banks that failed.

That's right.

The guy who CREATED the regulatory legislation that was supposed to keep this from happening again...his bank failed.

Leads me to believe this has NOTHING to do with regulation, and everything to do with inflation and interest rate hikes.

 

[Missourian]

No worries. Rich people safe:

They had to do it.

I don't like it any more than you do....but they had to stem the bleeding early.

Inflation caused this collapse. The banks Treasury Bonds were underwater. Read g5000 thread...it's a good one.

More Than $16 Trillion Of Underwater Bonds Are Out There

We are in a massive bond bubble, and it is beginning to pop. Silicon Valley Bank and Signature Bank are only the beginning. You can picture bond prices this way: The lower the interest rate a bond pays, the more expensive a bond is. The higher the interest rate it pays, the cheaper that bond...

www.usmessageboard.com

 

[easyt65]

.Trump is the one who made it political.
Regulations are in place for a reason, now people are paying the price for dedefegulation.

Perhaps you should save some of your condemnation and venom for the DEMOCRATS who joined with Republicans to write and pass the BIPARTISAN legislation Trump signed into law instead of just blaming Trump?!

 

[Billiejeens]

"Deregulation (and, actually, aggressive refusal to regulate) played a huge role in the Meltdown of 2008/2009, opening the floodgates for the shit securities like CMOs, CDOs and CDSs that brought us down."

Nope

It was Government over regulation and more importantly, Government social engineering.

 

[Lesh]

"Deregulation (and, actually, aggressive refusal to regulate) played a huge role in the Meltdown of 2008/2009, opening the floodgates for the shit securities like CMOs, CDOs and CDSs that brought us down."

Nope

It was Government over regulation and more importantly, Government social engineering.

That’s absolutely backwards

 

[Billiejeens]

Listening to them, you could be excused for thinking that the election never happened and TRUMP! was still president.

Well technically -

 

[Billiejeens]

That’s absolutely backwards

It's not.

You are just in a fucking cult that demands that you be really, really ignorant.

 

[Care4all]

Oil and gas policies were changed within hours of Biden taking office. If this policy was so bad, how come Democrats have not done anything in two years running? Your blame of Trump looks more foolish when you don’t even ask why no movement from Democrats.

Once again, not man enough to man up, and take the blame..... where the blame is due.

Have you ever LEARNED from any mistake in your entire life? Ya gotta admit to them first, not place blame elsewhere.

See below, how easy it is for me to criticize the Democrats on this....

Democrats in the senate that voted for Trump's deregulation bill in 2018, were WRONG to do so!!! The 17 senators voting for it, along with the 50 or so republican senators made the bill filibuster proof.

Now you should try it, with Republicans.... Imo.

 

[DBA]

That’s absolutely backwards

2008 was the result of bleeding heart liberals not doing their due diligence with regards to a plan to allow housing for people that would not have previously qualified for loans. As usual, they didn’t think things through to their logical conclusion.

 

[Lesh]

2008 was the result of bleeding heart liberals not doing their due diligence with regards to a plan to allow housing for people that would not have previously qualified for loans. As usual, they didn’t think things through to their logical conclusion.

Liberals had nothing to do with the liar loans granted back then

 

[Billiejeens]

2008 was the result of bleeding heart liberals not doing their due diligence with regards to a plan to allow housing for people that would not have previously qualified for loans. As usual, they didn’t think things through to their logical conclusion.

Or, and this is quite possible, didn't care.

 

[Billiejeens]

Liberals had nothing to do with the liar loans granted back then

Simply absolutely false.

 

[CrusaderFrank]

I want to share with you an article that explains how Trump's deregulation led to the collapse of Silicon Valley Bank, one of the largest banks in the country. The article is here: How Trump’s Deregulation Sowed The Seeds For Silicon Valley Bank’s Demise

The article says that Trump signed a law in 2018 that weakened the rules for banks that were put in place after the 2008 financial crisis. The law was called the Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155), but it did not protect consumers at all. It allowed banks like Silicon Valley Bank to take more risks with their money and hide their problems from regulators.

The law was supported by most Republicans and a minority of Democrats who were fooled by the bank lobbyists. Most Democrats voted against it The Senate passed it by a vote of 67-31, with 16 Democrats voting for it. The House passed it by a vote of 258-159, with 225 Republicans and 33 Democrats voting for it. Trump signed it into law on May 24, 2018.

Now we are paying the price for this Trump law. Silicon Valley Bank failed because it gambled on risky loans and investments that went bad. It also lied about its financial health and hid its losses from regulators and investors. The bank's failure caused a lot of damage to the economy and hurt millions of customers, employees and shareholders. This is why we need to hold Trump and his allies accountable for their actions.

They sold us out to the big banks and put our economy at risk. We need to repeal this law and restore strong regulations for banks that protect consumers and prevent another crisis.

Forbes Magazine Feb 14, 2023

America's Best Banks 2023

SVB Financial Group | SIVB Stock Price, Company Overview & News

PROFILE

SVB Financial Group​

SIVB
Santa Clara, California
$106.04

-161.79 (-60.41%)

Share Price​

as of March 9 4:00:00 PM EST

I'm guessing they weren't blaming Trump when they wrote this 3 weeks before it tanked

 

[DBA]

Or, and this is quite possible, didn't care.

Yes, very possible. It isn’t coincidental that the ultra-rich are heavily Democratic. The working “rich” are heavily Republican. Democrats protect the ultra-wealthy(Wall Street) and screw the working wealthy and the middle class. Remember the ultra-wealthy Democrats in the Hamptons going bananas when Trump capped the SALT deduction? They want the federal taxpayers to subidize their ridiculously high tax rates in the blue states.

 

[Mac1958]

Just a question,

If the bank (management) were acting in such irresponsible ways, where were the regulators?

1. Most of their actions were not irresponsible. They were purchasing MBSs, and that's normal. There are no regulations that require interest rate risk hedging. Yet.
2. It looks like Dodd-Frank had regulations on valuing bank assets, but that those regulations were rolled back in the last administration.
3. If management was indeed front-running, they'll probably get appropriately nailed here, and I'd be all for tighter regulations that make front-running less likely.