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

[easyt65]

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

Wow, ANOTHER thread by another snowflake pushing the same liberal disinformation.

Can't we combine these?

 

[Oddball]

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

SVB was the 16h LARGEST bank in Murica, giblet head.

 

[Toddsterpatriot]

That was a Republican Congress and a Republican President

And Barney FRANK of Dodd-FRANK.

 

[excalibur]

Convenient, wasn't it, how this bank situation occurred just as the Saudis gave a GIANT to Biden with the China-Saudi-Iran deal. Huh.

 

[struth]

That was a Republican Congress and a Republican President

that’s because the changes had nothing to do with xiden’s inflation policies that lead to these banks crashing

 

[blackhawk]

Interesting that Biden could undo everything Trump did involving border security on his first day in office but from January 20, 2021 till last Friday when the SVB shit hit the fan he couldn't find the time to do anything about these policies the left like to claim caused this.

 

[Missourian]

...and the Oscar for Fakest Fake News on a Messageboard goes to...the OP!!!!

 

[Viktor]

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.

HEY, STUPID! In the fucking stock market, ya cannot make money without taking risks.

 

[wamose]

Republican presidents are so bad that you still feel pain years later.

That's what every dogshit Democrat president says. It looks like JFK might be the last good Democrat president we will ever see.

 

[P F Tinmore]

HEY, STUPID! In the fucking stock market, ya cannot make money without taking risks.

It is not up to the taxpayers to bail out the billionaires.

 

[Nuthin' Fancy]

Its because deregulation had nothing to do with it.

You're wrong.

The 2018 law changed which banks are considered “systemically important” to regulators. It increased the threshold from institutions holding at least $50 billion in assets to those with $250 billion. That means only the largest banks face stricter regulation, including requirements to maintain certain levels of liquidity and capacity to absorb losses; comply with company- and government-run stress testing; and submit a living will to prepare for potential failure.

In a statement to a Senate committee in 2015, SVB CEO Greg Becker specifically advocated for raising the $50 billion threshold and argued that failing to do so would saddle mid-sized banks like his with “significant burdens that inherently and unnecessarily will reduce our ability to provide the banking services our clients need.”

The bank spent half a million dollars on lobbying in the leadup to the law’s passage, including on hiring two former senior staffers for now House Speaker Kevin McCarthy. It continued to lobby the FDIC even after the law was passed.

The Dodd-Frank regulations that SVB fought against might have helped identify the bank’s pitfalls earlier. Because the bank catered to Silicon Valley startups and investors with deposits that generally exceeded the $250,000 FDIC deposit insurance limit, 97 percent of its deposits were uninsured — an abnormally large share compared to other consumer banks.

It's just something they can use to blame someone else, and therefore it was very useful. Train derailments happen all the time and have for years.... now a few high profile derailments happen and suddenly its made political.

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

 

[Mac1958]

So let it fail. Don't fucking bail it out either.

Amid all the standard partisan noise, I'm trying to determine if this deregulation changed the requirements on reporting the value of securities owned by banks.

SVB was reporting its MBS holdings mark to maturity instead of mark to market, and Moody's caught it and was about to drop SVB two ratings levels.

So I'm trying to see if that specific reporting data point was affected by the deregulation. Can't find anything so far. Do you know?

 

[scruffy]

This is scary shit.

USA BANK RUN PANIC as Third Bank COLLAPSES in 5 Days. Signature Bank Closed by FDIC after BANK RUN​

Usually starts happening 6 months before a crash. Same pattern last time.

 

[Mac1958]

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

Another "thought":

I'm guessing that SVB didn't do any hedging against interest rate risk. That would have dropped their margins.

Will something like that need to be another requirement going forward on bank bond purchases? That's another layer of cost.

 

[candycorn]

Freakonomics refers to something called multiple causality. Plenty of blame to go around but it, at its core, rests with the owners of the institutions


But they are on to something....If you look at Bush's 8 years from 01 to 09, he came in, deregulated everything, and starting in his seventh year...boom...the bubble caused by the deregulation and letting banks and industry regulate themselves burst. Welcome to TARP.

Then Obama came about, slapped some restrictions on the banks and we had sound hiring, growth, and the stock market climbed (despite all of these regulations) 149% during his tenure. It started with 7,949.09. When he left it was 19,827. But, as always with the democrats, they seldom go far enough. What was too big to fail under Bush was still too big to fail under Obama.

Banks that were too big to fail still are and will require a bail out when/if they need one again.

What did the blob do? Repeat the same thing Bush did...deregulating. He didn't know what he was doing but his advisors sure did. I would love to go over what bills didn't make it out of committee during his 4 years; something that even the GOP Congress wouldn't go for. Had the blob won a 2nd term, he'd now be president during these recent bank failures.

 

[wamose]

Amid all the standard partisan noise, I'm trying to determine if this deregulation changed the requirements on reporting the value of securities owned by banks.

SVB was reporting its MBS holdings mark to maturity instead of mark to market, and Moody's caught it and was about to drop SVB two ratings levels.

So I'm trying to see if that specific reporting data point was affected by the deregulation. Can't find anything so far. Do you know?

I'm a pessimist when it comes to changing the nature of America's greedy businesses. They will always get around regulations which legislators write because legislators write them that way intentionally. If these irresponsible, greedy mofos are not held responsible for their actions, this bullshit will only get worse.

 

[cnm]

That’s my question. If those deregulations were so bad, they could have reversed trumps changes.

It's like we're not supposed to remember the filibuster exists and the majority doesn't rule. Or we're supposed to imagine Republicans will legislate for the good of the US rather than playing games in order to regain power.

It is to laugh.

 

[cnm]

Train derailments happen all the time and have for years.... now a few high profile derailments happen and suddenly its made political.

Lol. As though freight safety is not a political issue, ferociously lobbied against.

 

[cnm]

How Trump's Deregulation Sowed The Seeds For Silicon Valley Bank's Demise​

Trump's deregulation exempted Silicon Valley Bank from key liquidity requirements.​

 

[Care4all]

SVB was the 16h LARGEST bank in Murica, giblet head.

Yes it was a BIG ASS BANK.

The deregulation IN 2018, changed the definition of a small and midsize bank from a bank holding $50 BILLION, to a $250 BILLION dollar Bank....as being considered small and not a BIG bank still under regulation.

SVB was a $200 BILLION dollar Bank!!!!