Posted on 03/13/2023 9:13:05 PM PDT by DoodleBob
...Had Congress and the Federal Reserve not rolled back the stricter oversight, S.V.B. and Signature would have been subject to stronger liquidity and capital requirements to withstand financial shocks. They would have been required to conduct regular stress tests to expose their vulnerabilities and shore up their businesses. But because those requirements were repealed, when an old-fashioned bank run hit S.V.B., the bank couldn’t withstand the pressure — and Signature’s collapse was close behind.
On Sunday night, regulators announced they would ensure that all deposits at S.V.B. and Signature would be repaid 100 cents on the dollar. Not just small businesses and nonprofits, but also billion-dollar companies, crypto investors and the very venture capital firms that triggered the bank run on S.V.B. in the first place — all in the name of preventing further contagion.
Regulators have said that banks, rather than taxpayers, will bear the cost of the federal backstop required to protect deposits. We’ll see if that’s true. But it’s no wonder the American people are skeptical of a system that holds millions of struggling student loan borrowers in limbo but steps in overnight to ensure that billion-dollar crypto firms won’t lose a dime in deposits.
...
First, Congress, the White House and banking regulators should reverse the dangerous bank deregulation of the Trump era....
Second, regulators should reform deposit insurance so that both during this crisis and in the future, businesses that are trying to make payroll and otherwise conduct ordinary financial transactions are fully covered — while ensuring the cost of protecting outsized depositors is borne by those financial institutions that pose the greatest risk. Never again should large companies with billions in unsecured deposits expect, or receive, free support from the government.
(Excerpt) Read more at nytimes.com ...
We have more federal and state banking regulators than ever with lesser banks to regulate.
Deregulation is the problem! I’m stealing this-if she had one less IQ point, she’d be a leaf blower.
If only Social Security was a bank…
The Democrats were in charge of Congress for two whole years. Why didn’t they re-regulate the banks if Trump’s deregulation was so bad?
Pocahontas and Bernie the Grifter think that if they scream loud enough, no one will remember that little factoid.
Little discussed is all the lefty cash in that bank.
I commented to someone last night that I’m dubious they’d have been so quick on the draw had this been a Texas bank.
If Warren or any of her acolytes(See Katie Porter-Moron running for Senate in California) get their tentacles into the financial sector, you can kiss that sector goodbye.
You might as well give matches, gasoline, and fireworks to a couple of adolescent pyromaniacs and hope they “build a house.”
She’d suck at that too
On Monday, Biden had already blamed Donald Trump....
Pwesident Poopy Pants was too busy getting his butt wiped for two years to change those horrible regulations that Former Guy put in place.
Stress tests require actuaries and a functioning risk assessment dept. Rosk assessment is anathema,a to ESG.
Bfl
those who point are the problem
Lizzie, please take your meds.
“The smeller is the feller”
Joe Biden’s inflation is killing the banks. They have nothing to invest in anymore and the things they did invest in collapsed from high inflation.
Plus woke investments are BS. There were a lot of woke investments in SVB.
So the Democrats’ ATM was shut down? wah, wah, wah.
That’s apparently what got the current Vice President moving, ahem, ahead.
There were over 500 bank failures during the Obama administration. doesnt look like those regs did a thing.
She’s smoking that stuff in her pipe again she’ll be down for a few days.
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