Posted on 03/14/2023 2:36:19 PM PDT by SoConPubbie
On Monday’s broadcast of CNN’s “The Lead,” Rep. Josh Gottheimer (D-NJ) pushed back on President Joe Biden blaming the rollback of some financial regulations — which Gottheimer voted for — for the Silicon Valley Bank (SVB) collapse by stating that the regulators “should have caught” problems with SVB.
Host Jake Tapper asked, “So, today, President Biden placed some of the blame on this move by President Trump and Republicans in Congress to roll back some of the financial regulations in 2018. I think it was some of the Dodd-Frank regulations. You just heard Mark Zandi say that that change, that weakening of the financial regulations didn’t help what happened in the last few days. I should note you joined Republicans in passing that bill. Do you regret it?”
Gottheimer responded, “No, for the same reason that — you had a set of rules that literally applied to the largest few institutions in the country and also to our small and medium-sized and regional banks, it was impossible. They were all actually merging and selling to the larger banks and you had no community banks left in this country. And you need good community healthy banks for local businesses and for families and for farms. You need that. It’s really important.”
He continued, “What happened in the Silicon Bank situation was their investments weren’t smart. So, they had put a ton of their money, they had plenty of — their balance sheet was strong, the ratios — my understanding is the ratios from their holdings were strong. The issue is they put so much of their money that had been deposited into longer-term treasuries. And as interest rates went up, of course, the value of those treasuries went down. And then when everybody — this was just a classic run on
(Excerpt) Read more at breitbart.com ...
Regulators were probably paid off, or told not to notice the problems.
These banks weren’t diverse enough was the issue
VIDEO: Signature Bank ad before they collapsed
https://rumble.com/v2d5hkw-signature-bank-ad-before-they-collapsed.html
Not if ot was on purpose and by design.
Wow, Dems seem to be having strokes all over the place...how else to account for their honesty?
Same as it ever was…
Who is watching the watchers?
This had NOTHING to do with regulations. No doubt they had a resident examiner in place on a bank that large. It takes a lot of very stupid people to let this happen . . .bankers and regulators alike. Rate sensitivity reports that are essentially required should have caught this slow-motion train wreck many months ago. This almost unbelievable because it should have been so improbable. As a former regulator having been around several small bank failures, there just about has to be a future jailbird running around somewhere. Hard to be stupid in that magnitude . . . I suspect somebody was stealing, too. Failures and stealing seem to follow each other around.
Biden is engaging in cheap propaganda using the tactics of scapegoating. It is the practice of singling out a person or group for unmerited blame and consequent negative treatment. It is a hostile tactic used to smear an entire group of individuals according to the unethical or immoral conduct of a small number of individuals belonging to that group. Many times the subject of the scapegoating is not guilty of the charges against them. Scapegoating relates to guilt by association and stereotyping—both false tactics. The actions of scum like the Southern Poverty Law Center comes to mind when they use this technique to extort money from their political targets.
Can anyone think of three things the Biden administration has
taken responsibility for since he came into office?
One?
Oh yes, lowering gas prices...
The problem is because of the money creation and spending that’s happened over the last several years. All the politicians can do now is try to avoid taking the blame.
It’s a bad situation because the pain reliever is to give out more money but that’s exactly what must be reined in and raising interest rates is the way to do it.
Interest rates were so low in recent years because our government was willing to lend (create) the money at such a low cost (interest).
Democrat:
Why I’m seeing better than I have in at least six years...
That idiot stick that is his spokeman sure has a nice way
of upping his respectability. She says everything he has
done has improved things.
Several days ago she claimed he had lowered the National
Debt by $1.5 trillion.
She’s a mental basket case that one.
Barney Frank is on the board of this bank..hmmm
The regulators may not have even been qualified. Might’ve been a guy in a dress with a degree in LGBTQUYGU.
Very diverse video and catchy tune.
Give them an A for DEI and a B+ for ESG.
I read this post over at ZeroHedge about the situation, and if true (and it probably IS), WOW.
Regulators? After the fact. The problem is not confined to just a bank or two - it is systemic and predictable.
None of these people are getting at the root problem which is the ridiculous energy policies which caused increased inflation and interest rate hikes.
This is my congressman, no thanks to me. He markets himself as a bipartisan voice of reason. This is literally the first time I’ve seen him live up to his self-marketing.
LOL!! Probably not far from the truth.
You might just be right. I read that SVB was technically insolvent back in September. Line that up with massive political contributions to Democrats. What’s missing is an investigation that looks for meetings between SVB execs, politicians and regulators. Start several years ago and move forward to present. Banks don’t fail overnight, it’s usually a series of sometimes unrelated acts over time that cause failure. I seriously wouldn’t be surprised if this isn’t another Keating Five scenario, but the underlying reasons for failure being different.
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