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

[martybegan]

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.

You don't know that. All you know is they didn't have to do the mandated stress test. Their own internal risk analysis should have caught it without being told to do so.

 

[bripat9643]

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

How did Trump repeal it without Congress if Congress needs to pass a bill to reimpose it?

 

[Nostra]

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

Rampant Bidenflation and woke dipshits ran the bank into the ground.

 

[g5000]

There is a massive global bond bubble out there, folks. Governments everywhere have been running up astronomical debt for well over a decade. And they ramped up their debts even more during the pandemic.

This is equally so with corporate debt. Everyone took advantage of low interest rates since 2008 to take on a LOT of debt.

All that debt is out there in upside down bonds now.

Whoever is holding that debt is sitting on massive interest rate risk. And if they didn't hedge it, they're going down.

The stock market is stress testing to find out who is swimming naked.

 

[pyetro]

How did Trump repeal it without Congress if Congress needs to pass a bill to reimpose it?

Nobody claim Trump did it alone. A majority of his Republicans minions in both Houses voted for the bill Trump loved.

 

[g5000]

You don't know that. All you know is they didn't have to do the mandated stress test. Their own internal risk analysis should have caught it without being told to do so.

So as they were massively running up their interest rate risk, you actually believe they would have stopped themselves?!?

They obviously didn't. I provided a link to their financials. See for yourself!

A regulator would have stopped them. A stress test would have showed how far out in the wind they were, and a regulator would have required them to either hedge or offload that risk.

 

[francoHFW]

The stress test would have come up with what?

Again, T-Bills are rated as the safest investments out there. You think a government mandated stress test would call them into question?

yes. you people deregulate and cause corrupt bubbles and busts every time the GOP gets in for eight years. 1929 1989 2008 and this crap from Trump....

 

[g5000]

The big banks are well capitalized because they are stress tested.

It's the smaller banks which no one knows how much risk they are carrying. That's why the stock market is stress testing those banks today by crashing their stock prices.

 

[martybegan]

So as they were massively running up their interest rate risk, you actually believe they would have stopped themselves?!?

They obviously didn't. I provided a link to their financials. See for yourself!

A regulator would have stopped them. A stress test would have showed how far out in the wind they were, and a regulator would have required them to either hedge or offload that risk.

Again, how much was the increase in bond investment as compared to the increase in the total value of their deposits?

159% increase in bond investments coupled with a 159% increase in available deposits is an increase of zero relative to the growth of their value.

 

[martybegan]

yes. you people deregulate and cause corrupt bubbles and busts every time the GOP gets in for eight years. 1929 1989 2008 and this crap from Trump....

You wouldn't be able to figure out the real impact of these regulations if a harvard economics professor explained it to you.

 

[g5000]

There are also a lot of interest rate swaps out there which are done in the dark market. God only knows what's happening there.

 

[francoHFW]

So as they were massively running up their interest rate risk, you actually believe they would have stopped themselves?!?

They obviously didn't. I provided a link to their financials. See for yourself!

A regulator would have stopped them. A stress test would have showed how far out in the wind they were, and a regulator would have required them to either hedge or offload that risk.

another big cheer for GOP deregulation and oversight! It takes a real nitwit to vote for these guys....

 

[Dragonlady]

You don't know that. All you know is they didn't have to do the mandated stress test. Their own internal risk analysis should have caught it without being told to do so.

Hence the need for regulation. Either their risk analysis was flawed, or they ignored it, or they knew and tried to cover it up. Given the number of shares dumped by senior management in the weeks leading up to the collapse, I'm going with door number 3.

When it comes to greed and financial fuckups, my cynicism knows no bounds.

 

[Nostra]

Unlike the parroting rubes, I actually looked at SVB's financials.

Here's what sank SVB:

Investment securities totaled $128.0 billion at December 31, 2021, an increase of $78.7 billion, or 159.5 percent, compared to $49.3 billion at December 31, 2020. Our investment securities portfolio is comprised of: (i) an AFS securities portfolio and a HTM securities portfolio, both of which represents interest-earning fixed income investment securities; and (ii) a non-marketable and other equity securities portfolio, which represents primarily investments managed as part of our funds management business, investments in qualified affordable housing projects, as well as public equity securities held as a result of equity warrant assets exercised. The major components of the change in investment securities are explained below.


Inline XBRL Viewer


See page 66. You can see a massive increase in their bond holdings in 2021.

Explain how that is Trump’s fault.

 

[Catsnmeters]

THIS BANKING CRISIS IS 100% Joe Biden's fault....

Jesus. We are still suffering from Trumps policies.

I wonder how much Trump got from the bank for his gutting of policy?

 

[g5000]

Again, how much was the increase in bond investment as compared to the increase in the total value of their deposits?

159% increase in bond investments coupled with a 159% increase in available deposits is an increase of zero relative to the growth of their value.

Page 81 of their financials shows an 85 percent increase in deposits in the same period.

It was a bank run which did them in.

 

[Rambunctious]

Jesus. We are still suffering from Trumps policies.

I wonder how much Trump got from the bank for his gutting of policy?

3 years into crazy Joe's presidency and libs still blame Trump... unreal....

 

[Nostra]

Nobody claim Trump did it alone. A majority of his Republicans minions in both Houses voted for the bill Trump loved.

Funny how you left out all the Dimwingers who voted for it.

 

[Rambunctious]

Page 81 of their financials shows an 85 percent increase in deposits in the same period.

All from Chinese tech companies... now we know why Joe bailed them out... Xi ordered him to do it....

 

[Nostra]

So as they were massively running up their interest rate risk, you actually believe they would have stopped themselves?!?

They obviously didn't. I provided a link to their financials. See for yourself!

A regulator would have stopped them. A stress test would have showed how far out in the wind they were, and a regulator would have required them to either hedge or offload that risk.

Do we not have regulators now?