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

[366h34d]

Only a fool will believe it is the issue. The REAL REAL issue is SVB holding many many many long-term bonds which have lower interest rates than the FED's interest rate. Why did SVB buy so many in the first place ??????

 

[366h34d]

Fake News.

Silicon Valley Bank DIDN'T HAVE risky investments.

Their investments were 60% in Treasury Bonds that were underwater DUE ENTIRELY TO INFLATION.

Get some knowledge and stop believing the lies the Democrats are spoon feeding you.

It is not inflation. It is an interesting rate issue. Biden admin or the FED rises the interesting rate to cool down the inflation.

 

[Nostra]

The bank problem has everything to do with deregulation, just like the 1999 banking deregulation lead directly to the housing bubble collapse and the Great Recession of 2008.

In Canada, our then finance minister was asked by Canadian bankers to deregulate here and Paul Martin refused. That refusal saved Canada from the worst effects of the 2008 global financial collapse. European governments beat a path to our door to shore up their regulations.

0bama passed new regulations to negate the impact of that deregulation, so of course Trump had to get rid of it. And like night following day, banks are failing due to greed and lack of regulation. The definition of insanity is doing the same thing over and over and expecting a different result.

Why do you believe that Republicans are better for the economy???

Who was President in ‘99, Dumbass?

 

[initforme]

I thought the reason is because of the fake labor shortage,which has not contributed to inflation by the way.

 

[Ralph Norton]

Deregulations are destroying our banking system and poisoning our planet. Just say no more republicans!!!!

Repeal this piece of trash!

What the hell are you babbling about?
Repeal what?

 

[Rambunctious]

He provided charts, data and history to support his claims.

You repeated what you heard on your favorite media outlets and provided nothing. Then called him a liar and threw a tantrum.

You look like a fool to people with even a pinch of objectivity.

All bullshit... even the experts on CNN giggled at the question that this was Trump's fault....

 

[366h34d]

And what did they do when their assets started losing value????? They failed to report it, dumped their stock and tried to cover it up. Where was Goldman Sachs in all of this. They were supposed to be advising the bank's financial advisors.

You're so busy trying to blame Joe Biden that you completely dismiss the myriad players in this scenario, including Peter Thiele's part in all that transpired.

Do you watch anything besides MSM? SVB was busy doing pride month, and they had not had a risk dept head for over seven months. What losing value?? If no one checks or sells, the bond value is the same. It is written on the paper.

 

[Cellblock2429]

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

/——/ They could have done this two years ago if they were ever really concerned. Another attack on Yrump since everything else failed.

 

[martybegan]

I've shown it over and over. The law removed the stress test regulation from banks like SVB.

SVB then loaded up on interest rate risk. A risk a stress test would have revealed.

That interest rate risk was their downfall.

QED.

Again, what would have been a safer investment?

They have to invest or loan out the money to make money for their depositors.

 

[Missourian]

This is why the hack propagandists want their rube audiences to be as ignorant as possible. So they can gaslight the living daylights out of them, knowing they will bleev what they are told to bleev, and parrot what they are told to parrot.

You were doing so well in that other thread. But your Trump Derangement Syndrome has flared up and you just cannot help bullshitting to attempt to falsely blame Trump.

SVB was underwater in TREASURY BONDS!

A full 60% if there assets were in US Treasury Bonds paying 1.79% with a two year maturinty.

Treasury bonds are the heretofore GOLD STANDARD in safe, secure investment.

Inflation...or more correctly...the increase in interest rate is what sunk SVB...not "risky investments".

As interest rates increase...the amount that SVB had to pay in interest on the money on deposit was more than the amount they were bringing in on the 1.78% Treasury Bond maturity....which before the increase in interest rates was more than enough to cover the amount they owed their depositors.

When interest rates increased DRAMATICALLY to combat inflation...suddenly SVB not only owed their depositors, their unmatured 1.78% Treasury Bonds were unsellable...as new treasury bonds are paying 4.7% interest.

So they were forced to take a 1.8 BILLION dollar loss selling their 1.78% return Treasury Bonds.

And THAT LOSS is what caused the lack of confidence in the bank.

I'll link my research articles here momentarily.

Edit- SVB bond assets were paying 1.79%...not 1.78%


New equivalent treasury bonds are now paying 4.7%...not 4.04%.

Those changes have been made to this post.

 

[Rambunctious]

Yes, every expert you have watched on OANN has told you that. And you are too fucking stupid to question a thing you are fed.

Just a half hour ago two CNN banking experts laughed at the idea that this bank failure was Trump's fault....

 

[Catsnmeters]

All bullshit... even the experts on CNN giggled at the question that this was Trump's fault....

So you have said. Since CNN is fake news, your statement can be safely disregarded.

You can't have it both ways.

 

[martybegan]

They were not safe. I do not know how much more I can dumb down for you the risk they took with bonds.



When you are carrying a lot of risk, you actually want to set aside plenty of capital. That's another thing the rule change exempted SVB from.

And that money would have lost value as well due to inflation.

 

[Rambunctious]

These bank failures were not a regulatory problem... it was an oversight problem.... and its due to Biden's inflation rate and the feds trying to combat it....

 

[Rambunctious]

So you have said. Since CNN is fake news, your statement can be safely disregarded.

You can't have it both ways.

That's up to you to believe or not... but you can bet if those two CNN experts in banking could have blamed Trump they surely would have....

 

[Missourian]

And what did they do when their assets started losing value????? They failed to report it, dumped their stock and tried to cover it up. Where was Goldman Sachs in all of this. They were supposed to be advising the bank's financial advisors.

You're so busy trying to blame Joe Biden that you completely dismiss the myriad players in this scenario, including Peter Thiele's part in all that transpired.

It wasn't stock...it was bonds.

And they reported it IMMEDIATELY.

IT WAS THE NEWS THAT SUNK THE BANK...even though they likely could have likely had no issue recovering from the loss.

So, as usual, you completely wrong about everything you have said.

 

[Rambunctious]

Biggest failed thread this year.... LMFAO....

 

[Nostra]

So you have said. Since CNN is fake news, your statement can be safely disregarded.

You can't have it both ways.

And if you dismiss them you can no longer claim CNN is a reputable source.

You cant have it both ways.

 

[Catsnmeters]

That's up to you to believe or not... but you can bet if those two CNN experts in banking could have blamed Trump they surely would have....

What did they say the cause was?

 

[Rambunctious]

Libs think we are stupid... but its them that are stupid... this has nothing to do with a regulation cut.....