Watch while they "transfer wealth" by saving banks.
- Thread starter gardentiger
- Start date
Watch while you blame the current administration for another disaster caused by Trump's rollback of regulations that would have allowed the banks to be stress tested.
Trump signs the biggest rollback of bank rules since the financial crisis
The measure designed to ease rules on all but the largest U.S. banks passed both chambers of Congress with bipartisan support.
"Republicans deregulate not based on sound public policy decision-making, but on ideology. The GOP’s ideology tells them that regulation is bad. Republicans have learned nothing from the financial crisis and Great Recession that they piloted the nation into,"
Trump Weakened Regulations Then Silicon Valley Bank Collapsed
Banking experts are pointing out that Silicon Valley Bank might have been able to handle interest rate pressures if Trump and congressional Republicans hadn't rolled back Dodd-Frank banking regulations.
www.politicususa.com
How did I know that this would all come back to Trump......lolz. The Banks are stressed tested, on average they are spending more than $1b annually (and growing) on compliance and regulation, not including new regulation. The challenge though, especially for the Global Investment banks is they are now solely dependent on rates as that's really the only thing they can make money on (see Dodd Frank) . So when you jack up interest rates to 6% from an all time low, firms that used debt to build their companies can't make the debt payment and recap isn't an option as the regulation on balance sheets doesn't allow for it. As I stated ages ago, you've only seen the start of this. There are some big, broad household names that can't service their debt. Layoffs are the first step, shutting down business lines entirely will be the next.Watch while you blame the current administration for another disaster caused by Trump's rollback of regulations that would have allowed the banks to be stress tested.
Trump signs the biggest rollback of bank rules since the financial crisis
The measure designed to ease rules on all but the largest U.S. banks passed both chambers of Congress with bipartisan support.www.cnbc.com
"Republicans deregulate not based on sound public policy decision-making, but on ideology. The GOP’s ideology tells them that regulation is bad. Republicans have learned nothing from the financial crisis and Great Recession that they piloted the nation into,"
Trump Weakened Regulations Then Silicon Valley Bank Collapsed
Banking experts are pointing out that Silicon Valley Bank might have been able to handle interest rate pressures if Trump and congressional Republicans hadn't rolled back Dodd-Frank banking regulations.
The only way regulation helps them is if it prevents the rate of inbound deposits that outpaced their ability to find long term yield to cover (no regulation on that going back to Bush/Obama) and certainly a fed/admin that didn't lie about inflation for a year might have helped slow down the rate hikes.
Just a reminder for those of you that have this rosy nostalgia for his reign of glory and want to punish us with it again.
I agree I just love these interest rates under Biden ...........
lets see the ceo was on the board of the sf fedWatch while you blame the current administration for another disaster caused by Trump's rollback of regulations that would have allowed the banks to be stress tested.
Trump signs the biggest rollback of bank rules since the financial crisis
The measure designed to ease rules on all but the largest U.S. banks passed both chambers of Congress with bipartisan support.
"Republicans deregulate not based on sound public policy decision-making, but on ideology. The GOP’s ideology tells them that regulation is bad. Republicans have learned nothing from the financial crisis and Great Recession that they piloted the nation into,"
Trump Weakened Regulations Then Silicon Valley Bank Collapsed
Banking experts are pointing out that Silicon Valley Bank might have been able to handle interest rate pressures if Trump and congressional Republicans hadn't rolled back Dodd-Frank banking regulations.
the cfo was previously at aig
the cao was the cfo at lehman in 07
and the head of frm had a singular concern of dei
oh and they made no shortage of reminding about their commitment to dei. maybe, just maybe, anybody with half a brain could have seen this coming. dont hire idiots if you want to stay in business. dont give your money to idiots if you want to see it again. fk off with regulation, this bank had no business being subjected to ccar, period, full stop. im guessing you have no clue about ccar and what it entails testing, as well as fed response requirements. we dont need more regulation, we need more competent people in this country. this was purely interest rate risk...i could teach a monkey to hedge rates, hell they only had one currency to hedge in. play stupid games, win stupid prizes.
but trump of course. it always comes back to trump. forgot to mention bipartisan bill passed in both houses first but i assume that was an oversight and not intentionally misleading.
dei+esg=sol
gfy
If you had completed your GED, you'd know that the Fed is independent of the President, who has no role in interest rate increases. You might also understand supply and demand and how that impacts the Fed's decisions.
LOL, sure. If you know who was still President. It would all be his fault.
Last edited:
I guess that explains why the former head of the Fed is now the Secretary of the Treasury. This isn't Trump's doing. This has to do with the tech sector coming on glued and a bank that funded a lot of startups. It's myriad factors but of course we want to blame it on the Trumpster. I can just see it now it's going to be 2035 and the left will still be blaming Trump for everything.
There were multiple factors but rolling back regulations that weakened the banking industry's ability to manage risks was a huge piece of it.
You're never going to convince these people Trump lost. And you're never going to convince people like you Hillary lost. But I appreciate you once again trying to change the subject.
In agreement generally with what you are saying
Problem as i am seeing it is SVB was too far out in TreasuryBills and when customers started a run on the bank deposits then the SVB had to start selling Treasuries at a discount to cover withdrawals
I don’t see ANY connection to Trump other than SVB and Trump both live on earth
I also see this not a Biden problem but a bank management problem
But hey somehow Trump will get blamed
Thats why i plan to vote for him or DeSantis
Prefer DeSantis with Nicky Haley as VP
Time will tell
My investment ideas on the last year has been buy short term and I mean really short term bonds to get a decent rate but not too far out
Other hard assets like timber raw land sit on
Houses all sold rental and flips no real estate in portfolio
Stocks which will be reslly scarey in my opinion for at least 8-12 months stick with defense oil and limited in financial services but those card companies are going to take a whipping on write downs so I am thinking NO to these
in general no stock
sit on cash
How dense are you to say we don't believe Hillary lost? Have you heard me or any other Dem say that? You need to get out of your conspiratorial worldview and look at what she "actually" argued. She claimed that due to Comey re-opening the email investigation 10 days before the election, the DNC hack and Russian social media meddling that voters were improperly influenced. She did NOT believe the votes themselves were fraudulent and neither do I. How many times do we have to cover this before it sinks in?
I've already posted a video of many many democrats lying about the 2016 election. But I don't want to change the subject either. You are just blind.
Read what I said again, please. I really need to stop responding to you - you're a thread wrecker and too dumb to debate.
This is absolutely what the federal reserve wants to do. Watch the interaction bt Sen john Kennedy and Powell. He essentially admits it.
Fractional reserve banking is a long term ponzi scheme whose foundation is the world's reserve currency. Those days are slowly coming to an end.
Hilarious… Nothing is ever Biden’s fault, but everything is always Trumps fault! But remember guys, hes just trying to hold Republicans and Trumpers accountable to the truth!
Lmao
Lmao
You always have the best words; thank you for your analysis.
What was the OP implying with this post? Was he suggesting someone current is responsible for an issue caused by someone before him? It's called adding context to you numbnuts who stupidly romanticize the Trump economy without acknowledging the failures. As usual, Dems fix it, Pubs break it, then blame Dems for the shattered pieces.
Just saw where the bank officials paid out bonuses on Friday before closing
Not surprising to see that
Not surprising to see that
will in all probability claw those back from execs at minimum, possibly everyone
same w/ equity sales by ceo/cfo/chief counsel last cpl weeks
oh look who is on the board of signature bank....mr dodd frank himself barney frank. you cant make these people up. just incredible.
A
anon_5e8aassgcbjz1
Guest
Republican economic competence is the greatest myth in American politics. Turns out running a small business doesn’t qualify someone to understand monetary policy. Who knew
We are witnessing the biggest economic implosion in modern history even with the incredibly strong under pinnings that Trump put in place and you come on here talking like you have a clue on whats right or wrong? Please pull your head out of your @$$.
Was MBS, not Treasuries I think. They took some short term risk on MBS to cover the gap and liquidity bottomed out. I do think they had longer term treasury issues as well (bought high and market was cratering) but that could have been hedged out of.
Rolling back regulation doesn't weaken a firms ability to manage risk. Regulations are federally mandated compliance tools to ensure risk is followed a certain way which many times isn't the right methodology for the entire market. For example, a bank with $50b shouldn't be held to the same risk regs as one with $1t. Maybe instead of hiring a Chief Risk Officer with a larger focus on Diversity, Equity and Inclusion, they should have hired one that understood how to mitigate risk with structured hedging.
As I mentioned, regulation is a massive capital outlay for banks......massive. JP Morgan spent $2.8b last year in reg and reg tech costs, that's not including any fines for wrong doings, that's a cost center not a profit center. At the end of the day, Banks are publicly traded assets and their P&L matters. If the cost of regulation is outpacing profit, then you have to pull back regulation a bit, which is the case for smaller banks.
Dodd Frank pulled back all things proprietary trading from US Banks which was a major blow to the P&L. Lending is the #1 money maker for banks and even that is so highly regulated that larger banks won't touch startups as the risk profile isn't a fit and they don't make enough money to take the risk.
If the executives are Democratic donors they will keep stock sales and bonuses
If Republican Donors will get cursed and demonized and threatened with jail time
Watch and see if I am right
To be honest about my knowledge I really don’t know the total details so I speak in the dark
To share my thinking the last months I discussed with my family backing off stocks and stay in cash equivalents such as short term treasuries
My son says he is not worried as he is buying tax free with impending maturity
The problem with that could be if a municipality defaults at the end then we have an issue
Bank management more than likely took risks that they should have stayed away from like FTX
SVB may be involved in stuff like SVB
theyre dems, but theyll be clawed back. they might not be dragged through the media about it, but they would be if that wasnt done. the right and a handful of high profile dems like warren sanders would crucify the sec over not enforcing, but ultimately people would associate it with the entire financial system and its corresponding government agencies/regulators/current admin. the risk/reward isnt there to help out a few irrelevant friends.
very likely theyll have it made up to em in some form though, be it well compensated cushy treasury/fed/sec jobs, recurring guest spot on msnbc and a book deal, or receiving fat stacks from uncle sams piggy bank for their consulting work (by that i mean jumping on 3 conference calls and saying 12 words). standard benefits packages for their years of service.
It's all created to fail. Dem or Rep...I care not. One crisis after another allows them to implement what they want. Some are actual crises. Some are ginned up in the media.
Because Trump’s EGRRCPA eliminated important elements of Dodd-Frank’s Title I, Silicon Valley Bank and other banks of that asset size, are not required to calculate and report the Liquidity Coverage Ratio, the Net Stable Funding Ratio, or to conduct comprehensive liquidity assessment reviews. Capital and liquidity are not the same thing. High quality capital is comprised of common equity and retained earnings; they help you absorb unexpected losses. Liquidity is having enough assets that you can deploy when you urgently need to meet liabilities under stressed conditions. Clearly when SVB had to meet fleeing deposits which are a significant part of a bank’s liability, it did not have liquid assets to cover them.
The purpose of the Liquidity Coverage Ratio (LCR) is for banks to add up all of their high quality liquid assets such as cash, U.S. treasuries, AAA investment grade fixed income securities, and other cash equivalents. That figure is then divided by net stressed cash outflows; this is the part where banks have to calculate all the ‘what if’ scenarios. This part of the LCR requires banks to simulate what happens when big deposits or a significant number of deposits flee. The LCR also asks banks to calculate what happens to them when large receivables do not come in or how a bank is impacted when its biggest counterparties default. Dividing the numerator by the denominator tells you if a bank is sufficiently liquid in periods of stress. If the result is 100 or preferably much higher, banks should be able to meet their obligations at least for a month even in stressed obligations.
To say trump had no part in this is just partisan hackery, which is exactly what I expect of you.
Allowing banks to lend 10x their deposits with no reserves means more extremely low interest money in the economy, which leads to inflation, which leads to higher rates.
How Trump’s Deregulation Sowed The Seeds For Silicon Valley Bank’s Demise
Every couple of years lenders and traders tell me that ‘this time, it will be different.’ Silicon Valley Bank-induced chaos shows that bank deregulation always ends in the same painful way.
www.forbes.com
I love how the smart kids on tiger illustrated knows exactly what happened to a bank on the other side of the country.
"All the banks that were dumb enough to buy long-term Treasuries and MBS when yields were at all-time record lows have now been bailed out by the #Fed. What about pension funds, insurance companies, and private investors who made the same mistake? Why don't they get bailed out? -peter schiff
Because in this country the elites privatize gains and socialize losses.
Because in this country the elites privatize gains and socialize losses.
97% of depositors had $250k+ in SVP. FDIC insures up to 250k. The govt is promising to cover all deposits. The rich get richer. At the expense of the taxpayer. You need to know more? You think the details that come out in the next couple of months will paint a rosier picture?
Similar threads
