We’re old. People didn’t go to pre school
Silicon Valley Bank has failed
- Thread starter twenty02
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anon_6hv78pr714xta
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I think what the Grumpy Economist was trying to get across is that you don't need Dodd Frank (which requires more stress tests and focusing on exotic or extreme investments) to figure this out. Any competent regulator should have been able to see this in 5 minutes of review of the investments.As Sope pointed out...
The bill, called the Secure Viable Banking Act, would put banks with at least $50 billion in assets back under strict Federal Reserve oversight and Dodd-Frank Act stress tests. A bipartisan 2018 bill to loosen Dodd-Frank raised that threshold to $250 billion, which exempted Silicon Valley Bank and dozens of other banks from the strictest federal oversight.
Warren, Porter unveil bill to undo Trump-era Dodd-Frank rollback after Silicon Valley Bank collapse
Sen. Elizabeth Warren (D-Mass.) and Rep. Katie Porter (D-Calif.) have introduced a bill to repeal part of a Trump-era bank regulation rollback law in the wake of the collapse of Silicon Valley Bank…thehill.com
Here's the Top 20. notice #15 and #16
20 Largest Banks in the U.S.
Looking for a list of the largest in the U.S.? We've compiled the biggest banks by assets along with other key metrics.www.moneycrashers.com
Remember, every bank is regulated. I'm guessing SVB was regulated by the Fed and the OCC or some state regulators. We need to figure out why these people didn't do their jobs.
Regulatory Failure 101: What the Collapse of Silicon Valley Bank Reveals
It’s an all-too-familiar cycle: First comes the boom, then the breathtakingly speedy bust, and then the bailout. Now we’re in the moment where everyone wonders where the financial regulators were.
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anon_6hv78pr714xta
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Particular actions--like stealing a client's money--would count as breaches of fiduciary duty and crimes. But a breach of fiduciary duty, in and of itself, is a matter of civil law not criminal law.
Some outlier state might have passed a law criminalizing self-dealing, I guess, but that's typically a civil matter.
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anon_6hv78pr714xta
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He will get hit with a civil case. The odds of him personally paying any money, though, are small. Not impossible, but very unusual. Maybe pay back his bonus if the feds go after a clawback of those?
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anon_6hv78pr714xta
Guest
This is the kind of thing that creates resentment in the working class that I was referring to early in this thread.
This is not good.
Everyone should resent it. Essentially, a few unelected people get to decide who fails and who doesn’t over a weekend. It’s anti-American.
it's not personal. it's just business
because those being regulated, in this case the banks, pay them the big bucks in deferred compensation not to.
same reason as in 2008.
same reason regulators of other industries don't do their jobs.
same reason that Standard and Poors and Moody's lied their asses off in 2008 and the yrs prior, regarding the credit rating of financial instruments being sold by the big banks in a case of massive out and out fraud for which all involved should have gone to prison, instead of getting taxpayer subsidized big money bonuses.
sheeze people, it's not personal. it's just business.
because the courts, (probably SCOTUS in this case, but i'm too lazy to look it up), ruled they weren't fiduciaries after they were sued by those they defrauded and cheated.
thus the courts gave them their full blessing to lie and cheat all they want with immunity.
when Joe Voter thinks "conservative judge", they think pro forced birth.
when Joe Billionaire, who is the one who actually puts judges on the bench, thinks "conservative judge", they think a shill for Joe Billionaire and corporations on everything all the time, and anti worker anti consumer on everything all the time.
it's not about justice. it's just about business.
Bald and proud here. I started shaving my head when I still had a pretty good head of hair. Made me look a little leaner and meaner and I’ve kept with it. Now I couldn’t grow a full head if hair anyway.
Uhhh . . . not that I know of.As I recall you had a mole within the banking industry during the 2008 banking crisis in the form of a friendly female employee at a Wells Fargo bank.
At least you've got your priorities straight.I'm too drunk after watching such a great evening of basketball to write my own post, so here is this..
Interest Rate Swap: Definition, Types, and Real-World Example
An interest rate swap is a forward contract in which one stream of future interest payments is exchanged for another based on a specified principal amount.www.investopedia.com
Ennhhh . . . I see things a bit differently. I think what Yellen was saying was that unless there's systemic risk to the system, we're on our own for accounts over $250,000.
I wouldn't touch bank stocks today because if there's systemic risk then the whole economy is dependent upon the government backing up the system . . . and I don't have enough confidence in the government being able to borrow enough to cover whatever bailout of the systemic risk is needed.
Might be time to consider hiding dollars, euros and Yuan, if not gold, silver or copper, under the mattress.
the whole system IS dependent on govt backing it up.
we could ask the banks to do due diligence to back itself up, but that would be burdensome over regulation to the "free market" crowd.
so one can either be for necessary regulation and mandatory bank funded insurance, or for the govt/taxpayer backing it up.
capitalism will always want the govt/taxpayer backing it up, and the capitalists keeping all the profits for themselves.
it's not personal. just business.
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anon_6hv78pr714xta
Guest
Cue an advertisement for crypto in 3, 2, 1 . . .
Here's my question about crypto . . . where is the electricity going to come from to access those ducats when all goes to hell in a hand basket?
Why does everything have to go to hell in a hand basket? There isn’t a roadmap for any of this. It’s literally never happened in human history.
OK, if things go to hell in a wheelbarrow, where does the electricity come from?
That's what I'd like to know.
The network would start working again when electricity came back on. I’d be less concerned with a Mad Max scenario and more worried about being diversified to protect against a debt spiral in the U.S.
The FED is a centralized institution that sets fiscal policy. It’s not the free market. What do you think it is?
you need to pay less attention to what the Fed was set up to do, and more on what it now does, who it now serves and only serves, and has for well over a decade.
and if you think the banks aren't capitalism, then you have no business discussing anything economic. (which you apparently don't).
and today's big banks don't operate anything like Bailey Building and Loan.
more like casinos, con artists, and criminal organizations, with zero rules or morals or ethics or self control or needed oversight.
but then it isn't personal. just business.
that said, for all the benefits of capitalism, capitalism is like nuclear energy.
if not closely regulated and monitored 100% of the time, it will always melt down by it's own doing and always has melted down by it's own doing, and always has to be bailed out by socialism, which capitalism can't ever survive on it's own without.
just as socialism can't effectively survive absent being partnered with capitalism.
As a child were your only bedtime stories written by Karl Marx and Robert Reich? Also, the next time you answer a direct question, it will be your first.
Lol wut? This is why you aren’t taken seriously
No, it wasn’t and you’re clueless. My only annoyance with his post, similar to my wife, is he tells me about once a month I’m an idiot. I’ll take it from her but she looks good naked. Can’t say the same for JDB.
What do you think I meant? Do I really have to say monetary policy? JDB was being a dork.
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Yes, you do, because if you can't tell the difference between the two, you look like an idiot. And this is coming from the guy who spent this entire thread saying, "I don't understand this, can you explain it to me?"
Well he does have like 40 kids, so there’s that.
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