New bill would repeal the horrible bank law signed by Trump 5 years ago

[martybegan]

I don't think you realize that deposits are liabilities, not assets.

So as they increased their liabilities by 85 percent, their assets (bonds) were decreasing in value.

When the depositors began a bank run, SVB did not have enough liquidity to cover their liabilities.

They interest is a liability, the value is an asset they use to invest in other assets.

 

[g5000]

They interest is a liability, the value is an asset they use to invest in other assets.

Nope.

Deposits are money owed to the customers. They are 100 percent liabilities. They are loans made to the bank by the customers.

 

[Catsnmeters]

looks like someone making fun of the smartest stupid people.

Thanks for not helping.

 

[martybegan]

Nope.

Deposits are money owed to the customers. They are 100 percent liabilities. They are loans made to the bank by the customers.

They aren't loans. they are funds given to the bank for a combination of storage, access to usage via banking services, and as investment funding for the bank.

While they may be liabilities in the strictest sense, they are assets to be used by the bank to make money for the depositor.

You have more of an argument saying a CD is a loan to the bank, as at least that has time terms associated with them.

 

[jc456]

Thanks for not helping.

you're welcome?

 

[FA_Q2]

The standard for cluelessness is if someone knows these two guys?

You sound silly.

No, the standard for cluelessness would be the fact that you, as someone I assume both has ears and eyes, are so fucking dumb you did not realize it is ONE guy and a comedian. I mean, holy shit now I doubt you are intelligent enough to tell the difference between a cube and a cylinder. Does your average day have you using such complex equipment as this:

 

[FA_Q2]

The stress tests would not have identified this weakness...

"But even if midsize banks had been subjected to the same scrutiny as large banks, it isn’t clear that stress testing them would have led to changes that would have prevented failure. Why? Because the tests asked the wrong questions. They failed to encompass the scenarios that ultimately led to SVB’s demise—large and rapid increases in interest rates.

In its February 2022 Stress Test Scenarios, the Fed’s “severely adverse scenario” asked banks to assess their riskiness over a three-year horizon in a hypothetical world in which the three-month Treasury rate stays near zero while the 10-year Treasury yield declines to 0.75% during the first quarter of 2022 and doesn’t change in the subsequent two quarters. Even in December 2021, however, the Federal Open Market Committee’s Summary of Economic Projections was showing the Fed likely targeting interest rates double those of 2022 in 2023, far higher than what it used for bank stress tests."

Opinion | Stress Testing Wouldn’t Have Saved Silicon Valley Bank

The Federal Reserve fails to account for interest-rate risk.

www.wsj.com

Now this is something that actually pertains to the topic. I do not know enough to evaluate if they are correct in this opinion though. Perhaps G5000 or MAC can say why they think this is not correct.

 

[Catsnmeters]

No, the standard for cluelessness would be the fact that you, as someone I assume both has ears and eyes, are so fucking dumb you did not realize it is ONE guy and a comedian. I mean, holy shit now I doubt you are intelligent enough to tell the difference between a cube and a cylinder. Does your average day have you using such complex equipment as this:

Did his shirt say he was a comedian?

Are they credible economists?

Trumpers are getting economic advice from a random guy and a comedian on rumble no less?

This is truly pathetic.

Anyhow, do you know the name of the guy telling you about economics?

 

[g5000]

They aren't loans. they are funds given to the bank for a combination of storage, access to usage via banking services, and as investment funding for the bank.

While they may be liabilities in the strictest sense, they are assets to be used by the bank to make money for the depositor.

You have more of an argument saying a CD is a loan to the bank, as at least that has time terms associated with them.

A deposit is a loan to the bank. No ifs, ands, or buts about it.

The bank borrows from the depositor and uses that money to invest. They then pay the depositor a portion of their profit off the bank's investments.

The depositor can demand their money back at any time. And that is what happened to SVB. A bank run.

That's what makes deposits a liability. They are a short term loan to the bank.

Bank Deposits

Bank deposits are money placed into a deposit account at a banking institution, such as savings accounts, checking accounts, and money market accounts.

www.investopedia.com

The deposit itself is a liability owed by the bank to the depositor. Bank deposits refer to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and makes a cash deposit, he surrenders the legal title to the cash, and it becomes an asset of the bank. In turn, the account is a liability to the bank.

 

[FA_Q2]

Did his shirt say he was a comedian?

Are they credible economists?

Trumpers are getting economic advice from a random guy and a comedian on rumble no less?

This is truly pathetic.

You need an actual sign? You cant tell a comedian unless it is printed in their shirt! Like I said, so dumb you can't even tell. That really is breathtaking.

Do you carry your sign around for the rest of us?

Anyhow, do the name of the guy telling you about economics?

Apparently you some work in basic English as well.

 

[Lastamender]

Oh. Who is he?

A comedian and an American. Is that what bothers you?

 

[BackAgain]

Warren, Booker and Menéndez are sponsoring a bill that would repeal some of the harmful banking deregulations that were passed by a majority of Republicans five years ago. These deregulations allowed banks like Silicon Valley Bank and Signature Bank to take on excessive risks and eventually collapse, threatening the stability of our financial system.

Republicans should fix their karma a little by supporting this bill, which would restore critical oversight and capital requirements for large banks.

Democrats, led by Warren and Porter, unveil bill to repeal Trump-era bank law

The legislation, first reported by NBC News, would undo the core of a 2018 deregulation law by restoring enhanced scrutiny of banks with assets of $50 billion to $250 billion.

www.nbcnews.com

The bank actually didn’t take on excessive risk. That’s not what happened.

You know what did happen? Bidenflation got greeted with the Federal Reserve’s precipitous manipulation of the interest rate. This led to other investments becoming more lucrative to investors. So to become more liquid, the bank had to sell much of what it had invested-in at a loss. Big loss.

While the Fed deserves much of the blame, Potato deserves much more of it. His economic policies are a fucking disaster.

 

[g5000]

The bank actually didn’t take on excessive risk. That’s not what happened.

You know what did happen? Bidenflation got greeted with the Federal Reserve’s precipitous manipulation of the interest rate. This led to other investments becoming more lucrative to investors. So to become more liquid, the bank had to sell much of what it had invested-in at a loss. Big loss.

While the Fed deserves much of the blame, Potato deserves much more of it. His economic policies are a fucking disaster.

Biden had nothing to do with inflation.

However, when interest rates rose, depositors at SVB probably felt their money would be better invested elsewhere than in a low-interest deposit account and started withdrawing their money.

This caused a liquidity crisis at SVB.

Those depositors who had more than the insured $250,000 in their accounts got nervous and started a bank run.

 

[BackAgain]

Biden had nothing to do with inflation.

Bwahahahahahahahaha.

 

[g5000]

Bwahahahahahahahaha.

You can keep saying it, but that does not make it more true.

I know you learned this magical thinking from Trump, but it only leads to mental illness.

 

[Catsnmeters]

You need an actual sign? You cant tell a comedian unless it is printed in their shirt! Like I said, so dumb you can't even tell. That really is breathtaking.

Do you carry your sign around for the rest of us?




Apparently you some work in basic English as well.

So what is the guys name so I can look up his credentials?

 

[BackAgain]

You can keep saying it, but that does not make it more true.

I know you learned this magical thinking from Trump, but it only leads to mental illness.

 

[martybegan]

A deposit is a loan to the bank. No ifs, ands, or buts about it.

The bank borrows from the depositor and uses that money to invest. They then pay the depositor a portion of their profit off the bank's investments.

The depositor can demand their money back at any time. And that is what happened to SVB. A bank run.

That's what makes deposits a liability. They are a short term loan to the bank.

Bank Deposits

Bank deposits are money placed into a deposit account at a banking institution, such as savings accounts, checking accounts, and money market accounts.

www.investopedia.com

The deposit itself is a liability owed by the bank to the depositor. Bank deposits refer to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and makes a cash deposit, he surrenders the legal title to the cash, and it becomes an asset of the bank. In turn, the account is a liability to the bank.

That's what makes it not a loan. A loan has a term. Again a CD is far more a loan than a savings account.

Plus there are things like checking accounts that are for use, not for storage.

the account is a liability, the cash is an asset.

 

[Catsnmeters]

A comedian and an American. Is that what bothers you?

No. It bothers me because I don't want to spend time watching a random video from a couple guys I have no idea who they are.

If someone gives me a name I will check it out and if they are legit then I will check it out. I'm the interim I am not going to fill ad revenue coffers to watch a couple idiots repeat right wing sound bites.

 

[Nostra]

Biden had nothing to do with inflation.

Pushing for, and signing, all those massive spending bills didn't have anything to do with inflation?

Veggie Joe also appointed the morons Powell and Yellen, both of whom ignored inflation until it was out of control for months. They tried to tell us it was "transitory".

Bidenflation is on Biden, Simp.