Showing posts with label Silicon Valley Bank. Show all posts
Showing posts with label Silicon Valley Bank. Show all posts
Wednesday, March 22, 2023
Reckless Capitalist Banks Rescued by Government Socialism – Again!
Once again, government socialism—ultimately backed by taxpayers—is saving reckless midsized banks and their depositors...
Saturday, March 18, 2023
Opinion | Three and a Half Myths About the Bank Bailouts - The New York Times
Let's start with the silly stuff. On the right side of the political spectrum, many have quickly rallied around the claim that S.V.B. failed because it was excessively woke — which is only marginally less ludicrous than claiming that wokeness somehow causes train derailments…
Friday, March 17, 2023
GOP Author of Bank Deregulation Law Says 'No Need' for Tougher Safeguards
"You have to be hard-core committed to mindless free-market fundamentalism—or truly in thrall to your donors—to insist there's no need for new regulations after Silicon Valley Bank," wrote Robert Weissman, the president of Public Citizen. (Crapo received more than $880,000 in donations from the securities and investment industry between 2017 and 2022, according to OpenSecrets.)…
Wednesday, March 15, 2023
There’s a deeper story to Silicon Valley Bank’s failure. What can we learn from it? | Robert Reich | The Guardian
Once banking was deregulated, such a crash was inevitable. In the 1950s and 60s, when banking was boring, the financial sector accounted for just 10 to 15% of US corporate profits. But deregulation made finance exciting and exceedingly profitable. By the mid-1980s, the financial sector claimed 30% of corporate profits, and by 2001 – by which time Wall Street had become a gigantic betting parlor in which the house took a big share of the bets – it claimed a whopping 40%. That was more than four times the profits made in all US manufacturing.
Tuesday, March 14, 2023
Signature and Silicon Valley Bank Collapses Followed Softened Regulation - The New York Times
From the moment the law went into effect, the banking industry sought to rescind or at least relax it. Its argument was that onerous regulations constrained the industry's ability to lend money to creditworthy customers.
The argument fell on deaf ears with Mr. Obama in the White House. Mr. Trump was more receptive. Barely a week after taking office, he called Dodd-Frank "a disaster" and told reporters that "we're going to be doing a big number on" the law...
Monday, March 13, 2023
Trump-Era Deregulation Deemed a Key Culprit in Failure of Silicon Valley Bank
Sen. Elizabeth Warren (D-Mass.), an outspoken opponent of the deregulatory measure, said in a statement that "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."…
Saturday, March 11, 2023
Silicon Valley Bank Collapse: What We Know - The New York Times
Flush with cash from high-flying start-ups, Silicon Valley Bank bought huge amounts of bonds more than a year ago. Like other banks, Silicon Valley Bank kept a small amount of the deposits on hand and invested the rest with the hope of earning a return.
That had worked well until the Federal Reserve began raising interest rates last year to cool inflation. At the same time, start-up funding started to dry up, putting pressure on many of the bank's clients — who then began to withdraw their money. To pay those requests, Silicon Valley Bank was forced to sell off some of its investments at a time when their value had declined. In its surprise disclosure on Wednesday, the bank said it had lost nearly $2 billion...
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