Sanders: Trump Bank Law Caused Silicon Valley Bank Failure

[Farnhamia]

Sen. Bernie Sanders has blamed a Trump-era banking law for the Silicon Valley Bank's failure.

"Let's be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed," Sanders wrote in a statement on Sunday.

Sanders was referring to the Economic Growth, Regulatory Relief, and Consumer Protection Act, which former President Donald Trump signed into law in May 2018.


What is your opinion? O NSers ? Did it lead up to the failures of the two banks?

Read here to find out more:

https://www.msn.com/en-us/money/markets ... 3fb1&ei=27

[Stylan]

"the di"
what

[Farnhamia]

"the di"
what

One might read the OP. It's not long.

[Xind]

No this the result of U.S not applying the Basel Accords to "smaller" banks with only hundreds of billions of assets as opposed to larger banks with trillions in assets. That practice predates Trump. It was George H.W Bush who started with it during Basel I his son that continued it in Basel II , and Biden that maintained it in Basel III . Well that the fact the Silicon Valley bank didn't have risk management officer for like eight months.

[Cannot think of a name]

Took the guardrails down, bank fell. Adds up.

[American Legionaries]

Sen. Bernie Sanders has blamed a Trump-era banking law for the Silicon Valley Bank's failure.

"Let's be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed," Sanders wrote in a statement on Sunday.

Sanders was referring to the Economic Growth, Regulatory Relief, and Consumer Protection Act, which former President Donald Trump signed into law in May 2018.


What is your opinion? O NSers ? Did it lead up to the failures of the two banks?

Read here to find out more:

https://www.msn.com/en-us/money/markets ... 3fb1&ei=27

I find it a bit counterintuitive that Sanders says we shouldn't have banks that are "too big to fail" and then blames the removal of SVB from the "too big to fail" list for their collapse.

[Delvian States]

Sen. Bernie Sanders has blamed a Trump-era banking law for the Silicon Valley Bank's failure.

"Let's be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed," Sanders wrote in a statement on Sunday.

Sanders was referring to the Economic Growth, Regulatory Relief, and Consumer Protection Act, which former President Donald Trump signed into law in May 2018.


What is your opinion? O NSers ? Did it lead up to the failures of the two banks?

Read here to find out more:

https://www.msn.com/en-us/money/markets ... 3fb1&ei=27

I find it a bit counterintuitive that Sanders says we shouldn't have banks that are "too big to fail" and then blames the removal of SVB from the "too big to fail" list for their collapse.

I think that it's more that he wants strong bank regulations and every move that the GOP has made, and some that the Democrats have made, in the past, has been to undercut wise, long-established, banking regulations. I still want to bring back Glass-Steagall, but maybe that's just me.

[Bombadil]

The problem is that economics can be twisted and turned to anyone's ideology, some will say better guardrails will create more stability, some will say any restrictions constrain the free market..

"The inscrutability [of economics] is perhaps not unintentional. It gives endless employment to dialecticians who otherwise might become public charges or, at very worst, swindlers and tricksters."

I think the banking community should be responsible for bailing out banks, maybe that would make them a little more cautious as a whole, if the public is constantly bailing then there's little accountability.

[The Lone Alliance]

How Bernie has fallen where he's blaming Government for the failures of Banks.

[Mayhem Era Anglo-America]

How Bernie has fallen where he's blaming Government for the failures of Banks.

Well, government policy is largely dictated by the banks, so he can blame them for being good lackeys of their donors.

[The Black Forrest]

How Bernie has fallen where he's blaming Government for the failures of Banks.

Well, government policy is largely dictated by the banks, so he can blame them for being good lackeys of their donors.

Exactly. When you deregulate heavily; it allows large banks (which SVB was) to do shady shit or ignore signs of pending problems knowing they are too big to fail and the government will step in and bail them out.

Even back in the days of stock backdating. I remember the two founders of a company of the time were caught doing that and when asked why they did it? “There were no rules saying we couldn’t”. Never mind the fact I remember a week or two before; one founder was bitching about too many regulations in the country. It stifles business blah blah blah.

[Xind]

So on a related note UBS has agreed to buy Credit Suisse for three billion and take five billion losses. The deal is expected to go through by the end of the year.

"Provided markets don’t sniff out other lingering problems, I’d think this should be pretty positive," said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

Excuse me do you know which bank do you think you are talking about? Credit Suisse have been involved in dozens scandals it the reason they doing so badly. Well only one scandal Greensill is the reason they are hemorrhaging money. They can launder money for criminals , help their client dodge taxes ,and fuck over Mozambique ,but selling the vaporware bullshit Greensill was to wealthy clients as a risk free investment cost them. I bet more illegal stuff will be uncovered during due diligence.

[Tangatarehua]

Once again, Bernie Sanders reveals his utter ignorance of economics. As honourable a man as he may be, this is why I could never support him if I was American.

The bank failures were caused by banks with extremely frail financial structures built assuming a low interest rate environment being unable to cope with interest rates returning to a more historically usual level. Economists warned for years that this would happen and that the post-GFC low interest rates would not last forever and were contributing to financial bubbles which would inevitably burst, taking out the weaker banks first.

And that's exactly what happened.

[ImperialRussia]

Presidents should financially support banks financially

[Xind]

Once again, Bernie Sanders reveals his utter ignorance of economics. As honourable a man as he may be, this is why I could never support him if I was American.

The bank failures were caused by banks with extremely frail financial structures built assuming a low interest rate environment being unable to cope with interest rates returning to a more historically usual level. Economists warned for years that this would happen and that the post-GFC low interest rates would not last forever and were contributing to financial bubbles which would inevitably burst, taking out the weaker banks first.

And that's exactly what happened.

It would have happened earlier if it wasn't for covid. The Fed began raising interest rates in 2016 but cut them to practically zero for 2020-2022.

[Kerwa]

Credit Suisse failed too. And SVB would be in the same situation regardless. Banks are going to fail, it’s how they are resolved is important. I understand some people are upset about protecting rich depositors, but otherwise there’d be chaos; bank runs and such. Anyway a lot of those accounts over the insurance limit were for business and such so involved thing like payrolls etc. so it’s not just “bailing out the rich”.

SVB’s owners and bond holders did get fucked however, and that’s the main thing really. I also liked Biden’s idea about introducing clawbacks and lifetime bans for executives going forward. Sadly I doubt anything will happen in that regard.

[Alcala-Cordel]

The law probably played some part in the bank's fall, but capitalism is what destroyed it. Under a capitalist structure, companies are incentivized to cut as many corners as they possibly can to make as much money as possible. They're also entirely willing to lobby and elect politicians who support their interests. It's almost impossible to get elected to most government positions without significant corporate support, and giving in to special interests for money usually isn't considered corruption.

Economics is complex, but also manmade. Things like the interest rate are difficult to control when so many people are involved, but they're not forces of nature. It still really sucks that we live under such an abstract, unnatural system.

[Emotional Support Crocodile]

You can't trust ratings agencies.

[Ethel mermania]

You can't trust ratings agencies.

That's the lesson of the 2008 crash. The raters clearly misunderstood the risk, and rated the bonds accordingly. They are the ones who got off Scott free

As to sanders, it was a bipartisan effort to lower the requirements on regional banks.

Furthermore the depositors shouldn't be getting bailed out.

[Theodores Tomfooleries]

Hi guys. Sorry to say, it was actually me. I'm very clumsy and will occasionally crash multi-billion dollar banks by accident.

[Alcala-Cordel]

Army of lobbyists helped water down banking regulations
The effort to deregulate banks was bipartisan, which isn't too shocking imo. Democrats Jon Tester, Joe Donnelly, and Heidi Heitkamp were all involved in the process and received hundreds of thousands of dollars in turn. 17 Senate Democrats voted for the bill, and none of them seem too eager to take any responsibility for it now that SVB crashed. Of course, the primary source of all this trouble is the lobby. While the omnipresent practice of giving in to corporate influence technically isn't corruption, I view it as such.

[Kerwa]

You can't trust ratings agencies.

That's the lesson of the 2008 crash. The raters clearly misunderstood the risk, and rated the bonds accordingly. They are the ones who got off Scott free

As to sanders, it was a bipartisan effort to lower the requirements on regional banks.

Furthermore the depositors shouldn't be getting bailed out.

They didn’t misunderstand the risk. That’s the real lesson. They just lied.

The depositor question is tricky because of the collateral damage: i.e. the local supermarket going bust. On the other hand, judging by the price of SVB bonds there is no bailout for depositors in the case as there are adequate assets to cover them.

A general guarantee of depositors under the current system however will have hilarious and unintended consequences.

[HISPIDA]

Hi guys. Sorry to say, it was actually me. I'm very clumsy and will occasionally crash multi-billion dollar banks by accident.

its ok we forgive u <3

[Ethel mermania]

That's the lesson of the 2008 crash. The raters clearly misunderstood the risk, and rated the bonds accordingly. They are the ones who got off Scott free

As to sanders, it was a bipartisan effort to lower the requirements on regional banks.

Furthermore the depositors shouldn't be getting bailed out.

They didn’t misunderstand the risk. That’s the real lesson. They just lied.

The depositor question is tricky because of the collateral damage: i.e. the local supermarket going bust. On the other hand, judging by the price of SVB bonds there is no bailout for depositors in the case as there are adequate assets to cover them.

A general guarantee of depositors under the current system however will have hilarious and unintended consequences.

Agreed.

As it shakes out The depositors would get a decent portion of their money back, but certainly not in time for that supermarket to make a couple payroll checks.

[The Two Jerseys]

Hi guys. Sorry to say, it was actually me. I'm very clumsy and will occasionally crash multi-billion dollar banks by accident.

Sir, I'm going to have to give you a sobriety test...