pauldun170
Diamond Member
- Sep 26, 2011
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Pepperidge Farm remembers
“Had Congress and the Federal Reserve not rolled back the stricter oversight, S.V.B. and Signature would have been subject to stronger liquidity and capital requirements to withstand financial shocks,” Warren wrote Monday. “They would have been required to conduct regular stress tests to expose their vulnerabilities and shore up their businesses. But because those requirements were repealed, when an old-fashioned bank run hit S.V.B., the bank couldn’t withstand the pressure — and Signature’s collapse was close behind.”
Silicon Valley Bank collapse puts new spotlight on a 2018 bank deregulation law
Democratic Sen. Elizabeth Warren, who led the push against the Trump-era law, now wants to restore the rules on financial institutions. Biden is also calling on Congress to act.
www.nbcnews.com
Warren added that had stricter regulations for small and regional banks remained in place, regular required stress tests could have better prepared SVB for a bank run. She also repeated her constant criticism of the Federal Reserve’s actions under Jerome Powell’s guidance, saying a prioritization of loose monetary policies and low interest rates for much of his term let “financial institutions load up on risk.”
Elizabeth Warren knows exactly why Silicon Valley Bank failed—and who should pay
SVB CEO Greg Becker himself was one of many voices advocating for Dodd-Frank to be loosened. Oops.
fortune.com
Touting “SVB’s deep understanding of the markets it serves, our strong risk management practices”, Becker argued that his bank would soon reach $50bn in assets, which under the law would trigger “enhanced prudential standards”, including more stringent regulations, stress tests and capital requirements for his and other similarly sized banks.
Becker insisted that $250bn was a more appropriate threshold.
“Without such changes, SVB likely will need to divert significant resources from providing financing to job-creating companies in the innovation economy to complying with enhanced prudential standards and other requirements,” said Becker, who reportedly sold $3.6m of his own stock two weeks ago, in the lead-up to the bank’s collapse. “Given the low risk profile of our activities and business model, such a result would stifle our ability to provide credit to our clients without any meaningful corresponding reduction in risk.”
Silicon Valley Bank chief pressed Congress to weaken risk regulations
CEO Greg Becker personally led the bank’s half-million-dollar push to reduce scrutiny of his institution – and lawmakers obliged
www.theguardian.com
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
Silicon Valley Bank Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
Two senior aides to House Speaker Kevin McCarthy were among the top lobbyists for Silicon Valley Bank, the bank at the center of a new financial crisis.
theintercept.com