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

[Rambunctious]

Please stop. You are showing your ass and don't even know it.

You clearly have no clue.

You lost the debate with your own words....

 

[g5000]

Barney Frank, architect of Dodd-Frank Act, pushes back on Democrats blaming Trump for bank collapses | Blaze Media

Democrats, including President Joe Biden and Sen. Elizabeth Warren (D-Mass.), are blaming Donald Trump for the sudden collapse of two banks, Silicon Valley Bank and Signature Bank.But Barney Frank, a leading sponsor of the Dodd-Frank Act, sharply disagrees. The law, signed by then-President...

www.theblaze.com

Barney Frank was on the board of SVB.

Ponder that.

 

[Rambunctious]

SVB bank is in the wealthiest zip code on the planet....

 

[Rambunctious]

Barney Frank was on the board of SVB.

Ponder that.

And he knows nothing about banking... he is a communist for crying out loud....

 

[LeftofLeft]

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

If this bill by Trump was so horrible, why and how did it take Democrats two years from the time they had both the Hill and White House to now to make a change? Mind you, Democrats made sweeping changes to the domestic energy sector within hours of taking office.

 

[g5000]

Just like when house prices collapsed and millions of Americans were suddenly underwater with their mortgages, a lot of banks out there are holding underwater bonds.

SVB is just one of many. That is why the stock market is doing a stress test on the most vulnerable banks today.

 

[Rambunctious]

I wonder if Biden would have bailed out a bank in Texas....

 

[Rambunctious]

If this bill by Trump was so horrible, why and how did it take Democrats two years from the time they had both the Hill and White House to now to make a change? Mind you, Democrats made sweeping changes to the domestic energy sector within hours of taking office.

Its not horrible... it has nothing to do with why SBV failed... its just more TDS blame Trump....

 

[g5000]

You showed the change in the threshold, what you didn't and can't show is how the stress test would have shown a problem.

Again T-Bills are considered "safe" investments, and would not have flagged an issue with regards to risk.

If you have a bond you bought for 99 dollars, and the same bonds are selling for 75 dollars today, your 99 dollar bond is underwater. You can't sell it for 99 dollars. No one will buy it at that price. Understand?

And if the people your bank loaned money to start defaulting, you have to sell your bonds at a loss to cover your loan losses.

That's what happened to SVB.

It's very simple to grasp once you clear away all the bullshit.

 

[Lastamender]

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

No cigar. Trump did not destroy the banks. It is all Biden.

 

[martybegan]

Take a look at this chart: 10 Year Treasury Rate by Month

You can see in 2021, the year SVB massively increased their bond holdings by nearly 160 percent, the 10 year Treasury was hovering between 1.3 and 1.6 percent.

At the beginning of this month, the 10 year Treasury hit 3.91 percent.

Boom!

Again, how would the stress test show a problem, and what would their replacement investment be?

 

[Rambunctious]

If you have a bond you bought for 99 dollars, and the same bonds are selling for 75 dollars today, your 99 dollar bond is underwater. You can't sell it for 99 dollars. No one will buy it at that price. Understand?

And if the people your bank loaned money to start defaulting, you have to sell your bonds at a loss to cover your loan losses.

That's what happened to SVB.

It's very simple to grasp once you clear away all the bullshit.

BULLFUCKINGSHIT... you are not convincing anyone pal... your TDS is showing... first go to for lib liars... to blame Trump... hey fuckwad... Trump's been out of office for three years..... buuuaaahahahahahahahahahahahahahahahaha

 

[g5000]

martybegan
A stress test would have revealed just how large SVB's interest rate risk was. A stress test creates a scenario whereby interest rates rise and then determines how much of an impact that would have on your bank.

A stress test would have shown that SVB needed to set aside a LOT more capital to cover any potential losses. And that they needed to offload or hedge some of their risk.

It's that simple.

 

[martybegan]

If you have a bond you bought for 99 dollars, and the same bonds are selling for 75 dollars today, your 99 dollar bond is underwater. You can't sell it for 99 dollars. No one will buy it at that price. Understand?

And if the people your bank loaned money to start defaulting, you have to sell your bonds at a loss to cover your loan losses.

That's what happened to SVB.

It's very simple to grasp once you clear away all the bullshit.

So a bank fucked up being a bank. Again, what would the stress test had shown, when would it have shown it, and what would be the result beside the bank failing then instead of now?

 

[martybegan]

martybegan
A stress test would have revealed just how large SVB's interest rate risk was. A stress test creates a scenario whereby interest rates rise and then determines how much of an impact that would have on your bank.

A stress test would have shown that SVB needed to set aside a LOT more capital to cover any potential losses.

It's that simple.

So they would have failed right after the stress test, not right now.

 

[Rambunctious]

So a bank fucked up being a bank. Again, what would the stress test had shown, when would it have shown it, and what would be the result beside the bank failing then instead of now?

Don't waste your time with this g5000 fool....

 

[80zephyr]

Barney Frank was on the board of SVB.

Ponder that.

I did. It would have made sense for Frank to say it was Trump who caused this.

 

[g5000]

So they would have failed right after the stress test, not right now.

No, the stress test would have provided a warning. It would have warned SVB and the regulators that SVB needed offload their risk, or hedge it. It would have saved them.

 

[g5000]

SVB deliberately loaded up on interest rate risk after being exempted from stress tests.

They knew they were swimming naked, and when the tide went out, they got caught.

 

[g5000]

Interest Rate Risk Definition and Impact on Bond Prices

Interest rate risk is the danger that the value of a bond or other fixed-income investment will suffer as the result of a change in interest rates.

www.investopedia.com

Interest rate risk is the potential for investment losses that can be triggered by a move upward in the prevailing rates for new debt instruments. If interest rates rise, for instance, the value of a bond or other fixed-income investment in the secondary market will decline. The change in a bond's price given a change in interest rates is known as its duration.


Interest rate risk can be reduced by buying bonds with different durations, or by hedging fixed-income investments with interest rate swaps, options, or other interest rate derivatives.