Popular Post HipKat Posted March 12 Popular Post Share Posted March 12 3 1 Quote “There he goes. One of God's own prototypes. A high-powered mutant of some kind, never even considered for mass production. Too weird to live, and too rare to die.” Link to comment Share on other sites More sharing options...
Popular Post SackMan518 Posted March 12 Popular Post Share Posted March 12 4 minutes ago, HipKat said: LOL. Here were go blaming Trump again when you can go back further to Clinton and repealing the Glass-Steagall Act and George "Dumbass" Bush effectively becoming laissez-faire over the shadow banking system (money market funds, mortgages, investment banks). Pretty much nearly every regulation enacted after the Great Depression has been rolled back leaving us vulnerable for another giant crash but if you want to REALLY fix the problem you should... 1 4 Quote Sack "The Buffalo Range's TRUSTED News Source!" “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” ~ Dresden James Parler @NYexile Link to comment Share on other sites More sharing options...
HipKat Posted March 12 Author Share Posted March 12 SVB CEO Greg Becker lobbied the government to relax some Dodd-Frank provisions on regional lenders in 2015. Trump did in 2018. On Monday, the head of the Federal Deposit Insurance Corp. warned a gathering of bankers in Washington about a $620 billion risk lurking in the US financial system. By Friday, two banks had succumbed to it. Whether US regulators saw the dangers brewing early enough and took enough action before this week’s collapse of Silvergate Capital Corp. and much larger SVB Financial Group is now teed up for a national debate. SVB’s abrupt demise — the biggest in more than a decade — has left legions of Silicon Valley entrepreneurs in the lurch and livid. In Washington, politicians are drawing up sides, with Biden administration officials expressing “full confidence” in regulators, even as some watchdogs race to review blueprints for handling past crises. To his credit, FDIC Chair Martin Gruenberg’s speech this week wasn’t the first time he expressed concern that banks’ balance sheets were freighted with low-interest bonds that had lost hundreds of billions of dollars in value amid the Federal Reserve’s rapid rate hikes. That heightens the risk a bank might fail if withdrawals force it to sell those assets and realize losses. But despite his concern, the toppling of two California lenders in the midst of a single workweek marked a stark contrast with the years after the 2008 financial crisis, when regulators including the FDIC tidily seized hundreds of failing banks, typically rolling up to their headquarters just after US trading closed on Fridays. Even in the darkest moments of that era, authorities managed to intervene at Bear Stearns Cos and Lehman Brothers Holdings Inc. while markets were shut for the weekend. ‘Blind Spot’ In this case, watchdogs let cryptocurrency-friendly Silvergate limp into another workweek after it warned March 1 that mounting losses may undermine its viability. The bank ultimately said Wednesday it would shut down. That same day, SVB signaled it needed to shore up its balance sheet, throwing fuel onto fears of a broader crisis. A deposit run and the bank’s seizure followed. The KBW Bank Index of 24 big lenders suffered its worst week in three years, tumbling 16%. “With Silvergate there was a little bit of a regulatory blind spot,” said Keith Noreika, who served as acting comptroller of the currency in 2017. “Because they wound it down mid-week, everyone got a little spooked, thinking this is going to happen to others with similar funding mismatches.” Representatives for the FDIC and Fed declined to comment. The drama is already spurring arguments in Washington over the Dodd-Frank regulatory overhaul enacted after the 2008 crisis — as well as its partial rollback under President Donald Trump. Trump eased oversight of small and regional lenders when he signed a far-reaching measure designed to lower their costs of complying with regulations. A measure in May 2018 lifted the threshold for being considered systemically important — a label imposing requirements including annual stress testing — to $250 billion in assets, up from $50 billion. SVB had just crested $50 billion at the time. By early 2022, it swelled to $220 billion, ultimately ranking as the 16th-largest US bank. In 2015, SVB Chief Executive Officer Greg Becker urged the government to increase the threshold, arguing it would otherwise lead to higher costs for customers and “stifle our ability to provide credit to our clients.” With a core business of traditional banking — taking deposits and lending to growing companies — SVB doesn’t pose systemic risks, he said. Fast Growth Democratic Senator Elizabeth Warren of Massachusetts, where SVB had branches, said the easier rules played a role in SVB’s downfall. “President Trump and congressional Republicans’ decision to roll back Dodd-Frank’s ‘too big to fail’ rules for banks like SVB — reducing both oversight and capital requirements — contributed to a costly collapse,” she said in a statement. The lender achieved much of its meteoric growth by mopping up deposits from red-hot tech startups during the pandemic and plowing the money into debt securities in what turned out to be final stretch of rock-bottom rates. As those ventures later burned through funding and drained their accounts, SVB racked up a $1.8 billion after-tax loss for the first quarter, setting off panic. ‘Real Stress Test’ “This is a real stress test for Dodd-Frank,” said Betsy Duke, a former Fed governor who later chaired Wells Fargo & Co.’s board. “How will the FDIC resolve the bank under Dodd-Frank requirements? Investors and depositors will be watching everything they do carefully and assessing their own risk of losing access to their funds.” One thing that might help: SVB was required to have a “living will,” offering regulators a map for winding down operations. “The confidential resolution plan is going to describe the potential buyers for the bank, the franchise components, the parts of the bank that are important to continue,” said Alexandra Barrage, a former senior FDIC official now at law firm Davis Wright Tremaine. “Hopefully that resolution plan will aid the FDIC.” The issues that upended both Silvergate and SVB, including their unusual concentration of deposits from certain types of clients, were “a perfect storm,” she said. That may limit how many other firms face trouble. One complication is that the Fed has less room to help banks with liquidity, because it’s in the midst of trying to suck cash out of the financial system to fight inflation. Another is that a generation of bankers and regulators at the helm weren’t in charge during the last period of steep interest-rate increases, raising the prospect they won’t anticipate developments as easily as their predecessors. Indeed, even bank failures have been rare for a time. SVB’s was the first since 2020. “We’re seeing the effects of decades of cheap money. Now we have rapidly rising rates,” said Noreika. “Banks haven’t had to worry about that in a long time.” Quote “There he goes. One of God's own prototypes. A high-powered mutant of some kind, never even considered for mass production. Too weird to live, and too rare to die.” Link to comment Share on other sites More sharing options...
HipKat Posted March 12 Author Share Posted March 12 1 minute ago, SackMan518 said: LOL. Here were go blaming Trump again when you can go back further to Clinton and repealing the Glass-Steagall Act and George "Dumbass" Bush effectively becoming laissez-faire over the shadow banking system (money market funds, mortgages, investment banks). Pretty much nearly every regulation enacted after the Great Depression has been rolled back leaving us vulnerable for another giant crash but if you want to REALLY fix the problem you should... I should.... Post a picture that won't post? lol Quote “There he goes. One of God's own prototypes. A high-powered mutant of some kind, never even considered for mass production. Too weird to live, and too rare to die.” Link to comment Share on other sites More sharing options...
IrishLass Posted March 12 Share Posted March 12 So Trump was able to "relax regulations" without the benefit of a law. Was the plan to "undermine Joe Biden's economy?" Was Biden unable to reverse Trump's action? Or was he unaware of THE DANGER? Well I guess you won't be voting for Trump in 2024... Quote Link to comment Share on other sites More sharing options...
Woody Posted March 12 Share Posted March 12 15 minutes ago, SackMan518 said: LOL. Here were go blaming Trump again when you can go back further to Clinton and repealing the Glass-Steagall Act and George "Dumbass" Bush effectively becoming laissez-faire over the shadow banking system (money market funds, mortgages, investment banks). Pretty much nearly every regulation enacted after the Great Depression has been rolled back leaving us vulnerable for another giant crash but if you want to REALLY fix the problem you should... SVB was a woke, shitbrained bank. Blaming Trump is standard procedure. 2 Quote Link to comment Share on other sites More sharing options...
HipKat Posted March 12 Author Share Posted March 12 3 minutes ago, Woody said: SVB was a woke, shitbrained bank. Blaming Trump is standard procedure. You didn't read the article? Quote “There he goes. One of God's own prototypes. A high-powered mutant of some kind, never even considered for mass production. Too weird to live, and too rare to die.” Link to comment Share on other sites More sharing options...
Woody Posted March 12 Share Posted March 12 2 minutes ago, HipKat said: You didn't read the article? Yup. And I stand by my statement. 1 Quote Link to comment Share on other sites More sharing options...
SackMan518 Posted March 12 Share Posted March 12 30 minutes ago, HipKat said: I should.... Post a picture that won't post? lol I would attach it directly to the post but Lit set my attachment allowance to so low that I'd have trouble uploading a 1990's CGA picture that you could download in about 20 seconds on a 2400 baud modem. Quote Sack "The Buffalo Range's TRUSTED News Source!" “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” ~ Dresden James Parler @NYexile Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 12 Share Posted March 12 21 minutes ago, Woody said: SVB was a woke, shitbrained bank. Blaming Trump is standard procedure. 1 Quote Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 12 Share Posted March 12 38 minutes ago, SackMan518 said: LOL. Here were go blaming Trump again when you can go back further to Clinton and repealing the Glass-Steagall Act and George "Dumbass" Bush effectively becoming laissez-faire over the shadow banking system (money market funds, mortgages, investment banks). Pretty much nearly every regulation enacted after the Great Depression has been rolled back leaving us vulnerable for another giant crash Wow it's almost like we should get money out of politics so "special interests" can't lobby the government to do what they want at the expense of everybody else's well-being. Oh, and speaking of bad things we only have because of lobbying... 1 Quote Link to comment Share on other sites More sharing options...
Popular Post SackMan518 Posted March 12 Popular Post Share Posted March 12 1 minute ago, ICRockets2 said: Wow it's almost like we should get money out of politics so "special interests" can't lobby the government to do what they want at the expense of everybody else's well-being. I would agree with that and Citizens United was one of the worst judicial decisions I ever saw in my life. 1 2 Quote Sack "The Buffalo Range's TRUSTED News Source!" “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” ~ Dresden James Parler @NYexile Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 12 Share Posted March 12 1 minute ago, SackMan518 said: I would agree with that and Citizens United was one of the worst judicial decisions I ever saw in my life. You really should watch that video I posted, it's quite fascinating. Also rage-inducing, but like....in a productive way if that makes sense. Quote Link to comment Share on other sites More sharing options...
HipKat Posted March 13 Author Share Posted March 13 8 hours ago, SackMan518 said: I would attach it directly to the post but Lit set my attachment allowance to so low that I'd have trouble uploading a 1990's CGA picture that you could download in about 20 seconds on a 2400 baud modem. That's stupid 1 Quote “There he goes. One of God's own prototypes. A high-powered mutant of some kind, never even considered for mass production. Too weird to live, and too rare to die.” Link to comment Share on other sites More sharing options...
IrishLass Posted March 13 Share Posted March 13 19 hours ago, ICRockets2 said: Wow it's almost like we should get money out of politics so "special interests" can't lobby the government to do what they want at the expense of everybody else's well-being. Oh, and speaking of bad things we only have because of lobbying... Sort of like Pfizercide. You didn't fall for THAT one, did you? Quote Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 13 Share Posted March 13 2 hours ago, IrishLass said: Sort of like Pfizercide. You didn't fall for THAT one, did you? Kill yourself, Patti. 1 1 Quote Link to comment Share on other sites More sharing options...
DannyBoy Posted March 13 Share Posted March 13 President Trump on Thursday 05/2018 signed a bipartisan bill to loosen key portions of the Dodd-Frank Act of 2010, cementing the first major changes to President Obama’s landmark banking law. Trump enacted the legislation during a White House ceremony two days after the House of Representatives passed the bill to exempt dozens of banks from strict federal regulation. Trump had pledged to “dismantle” Dodd-Frank, a law long targeted by Republicans, and touted the bill he signed as the first step in that process. While the bill will release dozens of banks from stronger Federal Reserve oversight, it falls well short of the president’s vow to repeal and replace Dodd-Frank. {mosads}“We’ve kept a lot of promises,” Trump said. “This is truly a great day for Americans, and a great day for workers and small businesses across the nation.” The bill signed by Trump was the product of years of bipartisan negotiations between Republican senators opposed to the entire law and moderate Democrats concerned about its impact on community banks and credit unions. The narrow GOP majority in the Senate made it impossible to pass a Dodd-Frank rollback without the support of moderate Democrats. The legislation was introduced in November by Senate Banking Committee Chairman Mike Crapo (R-Idaho) and a group of moderate Democrats on the panel, including Sens. Heidi Heitkamp (N.D.), Jon Tester (Mont.), Joe Donnelly (Ind.) and Mark Warner (Va.). Events News | The Hill BY SYLVAN LANE - 05/24/18 12:32 PM ET A lot had their hands in this. BUT, very few liked the Dodd-Frank restrictions afterwards due to heavy handed government involvement and restrictions. Quote Link to comment Share on other sites More sharing options...
Popular Post Philly'sFinest Posted March 13 Popular Post Share Posted March 13 2 1 Quote Link to comment Share on other sites More sharing options...
HipKat Posted March 14 Author Share Posted March 14 5 minutes ago, Philly'sFinest said: Anything to avoid the truth Quote “There he goes. One of God's own prototypes. A high-powered mutant of some kind, never even considered for mass production. Too weird to live, and too rare to die.” Link to comment Share on other sites More sharing options...
SackMan518 Posted March 14 Share Posted March 14 9 minutes ago, HipKat said: Anything to avoid the truth Which is that bankers are scumbags and work in a profession more detestable than prostitution? Quote Sack "The Buffalo Range's TRUSTED News Source!" “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” ~ Dresden James Parler @NYexile Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 14 Share Posted March 14 Gosh I wonder what Sack doesn't like about "bankers" Quote Link to comment Share on other sites More sharing options...
SackMan518 Posted March 14 Share Posted March 14 1 minute ago, ICRockets2 said: Gosh I wonder what Sack doesn't like about "bankers" Hmm, I'm guessing you're antisemitic if you assume bankers belong to one religion but that's kind of what I expect from a communist. 1 Quote Sack "The Buffalo Range's TRUSTED News Source!" “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” ~ Dresden James Parler @NYexile Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 14 Share Posted March 14 1 minute ago, SackMan518 said: Hmm, I'm guessing you're antisemitic if you assume bankers belong to one religion but that's kind of what I expect from a communist. "Uhhh actually the antisemitic person is the one who understood my dog whistle" Quote Link to comment Share on other sites More sharing options...
SackMan518 Posted March 14 Share Posted March 14 3 minutes ago, ICRockets2 said: "Uhhh actually the antisemitic person is the one who understood my dog whistle" Oh I understood it but that's because I'm smarter than you and 3 steps ahead. It's probably best if you don't try to take me on anymore for your own sake, that is, unless you enjoy being embarrassed. 1 Quote Sack "The Buffalo Range's TRUSTED News Source!" “When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” ~ Dresden James Parler @NYexile Link to comment Share on other sites More sharing options...
ICRockets2 Posted March 14 Share Posted March 14 5 minutes ago, SackMan518 said: Oh I understood it but that's because I'm smarter than you and 3 steps ahead. It's probably best if you don't try to take me on anymore for your own sake, that is, unless you enjoy being embarrassed. Honey do you see the quotation marks around what you responded to? You're the one who dogwhistled you fucking retarded illiterate goon. Quote Link to comment Share on other sites More sharing options...
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