Democrats Desperately Rush To Try To Blame Trump For Silicon Valley Bank Collapse

[CowboyTed]

"1st, the collapse had "nothing to do with Trump or Dodd-Frank" and more to do with an "unusual confluence of events."

"The bank "dealt almost exclusively with tech firms which usually rely on continuously rolling over large debts" which means that the firms are "not paying off their debt but simply taking out new debt to pay off the old."

"2nd, SVB put a disproportionate amount of its cash into long-term bonds. Ordinarily, that’s not a bad strategy, but it’s unwise when interest rates are zero because those rates must rise eventually.

When rates rise, bond prices fall. This is because an investor with the choice to buy an existing bond at a low rate or a new bond at a high rate will choose the new bond since it’s a better return on investment.

If you want to sell the old bond with its lower interest rate, you must be willing to sell it at a discount; otherwise, no one will buy it."

"SVB's undiversified clientele meant "too many depositors needed cash all at once" forcing the liquidation of bonds that had lost value and a "death spiral" quickly ensued."

To highly efucated,intelligent people,this clearly spells out the fact that the BI-PARTISAN law Trump signed into law had NOTHING to do with the Silicon Valley Bank's collapse.


Democrats, however, are desperate to avoid being blamed for the second-largest bank collapse in United States history.

Liberals blame Trump for Silicon Valley Bank collapse citing 2018 bipartisan bill

Liberals took to social media to place blame on former President Trump after FDIC regulators shut down Silicon Valley Bank on Friday after it lost $2 billion.

www.foxbusiness.com

From the time:

The bill’s passage was a defeat for progressive Democrats, who strongly opposed easing regulations for some banks, warning that doing so would likely trigger another financial crisis.

RELATED: What’s in the Senate banking bill

“This legislation threatens to undo important rules protecting us from risk,” Sen. Sherrod Brown, the top Democrat on the banking panel, said earlier this week on the Senate floor. “This legislation again puts taxpayers on the hook for bailouts.”

Progressives pointed to several critical changes in the bill that would release more than two dozen regional banks from stricter oversight by the Fed and would make it easier for Wall Street banks to fight off existing regulations.

“Buried down in the details of the bill are more landmines for American families” Sen. Elizabeth Warren, a Massachusetts Democrat, said on the Senate floor ahead of the chamber’s vote. “Washington has become completely disconnected from the real problem in people’s lives.”

https://edition.cnn.com/2018/03/14/politics/banking-bill-vote-mike-crapo/index.html

So they were right but the lobbyists won.... Banking Lobby found the the GOP are far easier to bribe than Progressive Democrats..

Thanks for pointing that out easy...

 

[easyt65]

From the time:

The bill’s passage was a defeat for progressive Democrats, who strongly opposed easing regulations for some banks, warning that doing so would likely trigger another financial crisis.

RELATED: What’s in the Senate banking bill

“This legislation threatens to undo important rules protecting us from risk,” Sen. Sherrod Brown, the top Democrat on the banking panel, said earlier this week on the Senate floor. “This legislation again puts taxpayers on the hook for bailouts.”

Progressives pointed to several critical changes in the bill that would release more than two dozen regional banks from stricter oversight by the Fed and would make it easier for Wall Street banks to fight off existing regulations.

“Buried down in the details of the bill are more landmines for American families” Sen. Elizabeth Warren, a Massachusetts Democrat, said on the Senate floor ahead of the chamber’s vote. “Washington has become completely disconnected from the real problem in people’s lives.”

https://edition.cnn.com/2018/03/14/politics/banking-bill-vote-mike-crapo/index.html

So they were right but the lobbyists won.... Banking Lobby found the the GOP are far easier to bribe than Progressive Democrats..

Thanks for pointing that out easy...

The article I posted clearly states rhe BIPARTISAN Bill Trump signed HAD NOTHING TO DO WITH THE SVB COLLAPSE.

You desperate dumbasses tried the same pathetic stunt with the Palestine Oh train disaster DESPITE THE NTSB HAVING TO CALL OUT DEMOCRATS TWICE FOR LYING, REPEATING TRUMP HAD NOTHING TO DO WITH THE ACCIDENT.

SAME pathetic lying attempt to blame Trump here.

THIS is the 2nd time now this has been pointed out to you, but, as with the train disaster, Democrats and snowflakes will continue to desperately try to blame Trump.

Thanks for proving that.

 

[Care4all]

Home Depot co-founder torches ‘woke’ Silicon Valley Bank collapse, warns recession may be here already

Home Deport co-founder Bernie Marcus analyzed the historic collapse of 'woke' Silicon Valley Bank and the harmful impact it could have on everyday Americans.

www.foxnews.com

Home Depot Co-Founder Bernie Marcus TORCHED 'WOKE' the Silicon Valley Bank, putting tbe blame for its collapse squarely whete it belongs:

"I can't wait for Biden to get on the speech again and talk about how great the economy is and how it's moving forward and getting stronger by the day. And this is an indication that whatever he says is not true. And maybe the American people will finally wake up and understand that we're living in very tough times, that, in fact, that a recession may have already started. Who knows? But it doesn't look good."

"I feel bad for all of these people that lost all their money in this woke bank. You know, it was more distressing to hear that the bank officials sold off their stock before this happened. It's depressing to me. Who knows whether the Justice Department would go after them? They're a woke company, so I guess not. And they'll probably get away with it."

Silicon Valley Bank officials KNEW the collapse was imminent and they sold off their stocks to save their ass / money.

SVB was the 16th largest bank in the United States until Friday afternoon. It failed after anxious depositors rushed to withdraw money over concern for the bank's health...and it did not have tbe cash to cover.

Can you give and examp!e of a company /business or two, that is not woke?

 

[Lesh]

Ok. Until five minutes ago I never had a thought that this bank failure was caused by Trump.

We do know that Trump rolled back parts of Dodd/Frank

The question is pretty simple. Did those roll backs allow this to happen or not…

I have seen nothing here or elsewhere showing it did or did not so…

 

[pknopp]

Just like the train issue I say this is the fault of Bush, Obama, Trump and Biden.

First.


EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, told FOX Business on Saturday that the collapse had "nothing to do with Trump or Dodd-Frank" and more to do with an "unusual confluence of events."

Antoni explained that the bank "dealt almost exclusively with tech firms which usually rely on continuously rolling over large debts" which means that the firms are "not paying off their debt but simply taking out new debt to pay off the old."

How is this an "unusual confluence of events"? It's an inevitable confluence of events. I could see me taking out a loan for $60k on a car and going in next month and saying "I can't make the payments, give me a loan for $61K" and doing this over and over.

The bank says "OK, but the interest rates are higher". What do they expect?

I noted back when Dodd/Frank was passed it was not going to stop the problems. Did you note that the government shut down the bank so people could not access their money? They aren't getting this money outside of $250,000 until the banks obligations are met.

Then we can question the "regulators". What do they do all day? I'm guessing they kick back and hope for the best.

Bush failed with allowing the mess to start with. Obama failed for protecting the banks at all costs. Trump was a fool for "Roll back regulations" and this all happened under Biden so it falls in his lap.

 

[JohnDB]

SVB got away with some sort of fraud....

To only be classified as a "mid sized bank" by the Federal government was in itself a crime. Because if it was classified as a large bank (which they were) then more regulations come into place and stress testing of their balance sheets and investments are required.

However,
Now we will see several viable tech startups absolutely scrambling for cash. Some won't make it.

The officers at SVB probably need to be held criminally liable for exercising their options and dumping their stocks last month and last week. They knew that the bank was insolvent and in trouble....they knew that over investing in T-Bills was a bad idea.

But since they did dumb stuff....they need to pay the stupid tax of losing that money.

 

[pknopp]

SVB got away with some sort of fraud....

To only be classified as a "mid sized bank" by the Federal government was in itself a crime. Because if it was classified as a large bank (which they were) then more regulations come into place and stress testing of their balance sheets and investments are required.

However,
Now we will see several viable tech startups absolutely scrambling for cash. Some won't make it.

The officers at SVB probably need to be held criminally liable for exercising their options and dumping their stocks last month and last week. They knew that the bank was insolvent and in trouble....they knew that over investing in T-Bills was a bad idea.

But since they did dumb stuff....they need to pay the stupid tax of losing that money.

There absolutely should be criminal charges. There will not. There will only be calls for another taxpayer bail out.

 

[Dadoalex]

"1st, the collapse had "nothing to do with Trump or Dodd-Frank" and more to do with an "unusual confluence of events."

"The bank "dealt almost exclusively with tech firms which usually rely on continuously rolling over large debts" which means that the firms are "not paying off their debt but simply taking out new debt to pay off the old."

"2nd, SVB put a disproportionate amount of its cash into long-term bonds. Ordinarily, that’s not a bad strategy, but it’s unwise when interest rates are zero because those rates must rise eventually.

When rates rise, bond prices fall. This is because an investor with the choice to buy an existing bond at a low rate or a new bond at a high rate will choose the new bond since it’s a better return on investment.

If you want to sell the old bond with its lower interest rate, you must be willing to sell it at a discount; otherwise, no one will buy it."

"SVB's undiversified clientele meant "too many depositors needed cash all at once" forcing the liquidation of bonds that had lost value and a "death spiral" quickly ensued."

To highly efucated,intelligent people,this clearly spells out the fact that the BI-PARTISAN law Trump signed into law had NOTHING to do with the Silicon Valley Bank's collapse.


Democrats, however, are desperate to avoid being blamed for the second-largest bank collapse in United States history.

Liberals blame Trump for Silicon Valley Bank collapse citing 2018 bipartisan bill

Liberals took to social media to place blame on former President Trump after FDIC regulators shut down Silicon Valley Bank on Friday after it lost $2 billion.

www.foxbusiness.com

Perhaps some source other than the liars at FAUX would bring credibility.

SVB CEO Greg Becker lobbied the government to relax some Dodd-Frank provisions on regional lenders in 2015. Trump did in 2018.

When Silicon Valley Bank busted, it had assets of $220 billion. Trump's rollback lifted the "systemically important" threshold from $50 billion to $250 billion.

fortune.com

Trump's rollback of the Dodd-frank regulations kept SVB out of the sight of regulators.
Bank was paying interest rats far above market to draw deposits (sound familiar from 2005-6?)

Was it Trump's fault? NO!
It is the fault of the management who used loopholes in the law to drive risky investments while not adhering to cash requirements.

But let's blame Trump, Biden, GOP, Dems...
Whatever we do let's not place the blame where it belongs.

 

[JohnDB]

Perhaps some source other than the liars at FAUX would bring credibility.

SVB CEO Greg Becker lobbied the government to relax some Dodd-Frank provisions on regional lenders in 2015. Trump did in 2018.

When Silicon Valley Bank busted, it had assets of $220 billion. Trump's rollback lifted the "systemically important" threshold from $50 billion to $250 billion.

fortune.com

Trump's rollback of the Dodd-frank regulations kept SVB out of the sight of regulators.
Bank was paying interest rats far above market to draw deposits (sound familiar from 2005-6?)

Was it Trump's fault? NO!
It is the fault of the management who used loopholes in the law to drive risky investments while not adhering to cash requirements.

But let's blame Trump, Biden, GOP, Dems...
Whatever we do let's not place the blame where it belongs.

I personally would blame the Fed for the pump and dump of the USA economy with the "free money" bonds coinciding with the announcement of vaccines being available for Covid-19.
Which had the result of runaway inflation and an immediate increase in Fed Rates to stop it.

They overpumped too much money into the economy....too much too fast was the problem. Everyone said so when they done it....but everyone was watching the stock market rise and too busy celebrating their very temporary successes to care.

Of course someone was going to be left holding the bag....and SVB is just one of those who did.

Some people bought Crypto currencies....and they got crushed with stupid tax. Coinbase bank which initially sold at $350/share is now trading at $53/share and falling. (8% drop this weekend so far)


Let's see if any of the half of tech startups in the USA survives this one.

 

[Dadoalex]

I personally would blame the Fed for the pump and dump of the USA economy with the "free money" bonds coinciding with the announcement of vaccines being available for Covid-19.
Which had the result of runaway inflation and an immediate increase in Fed Rates to stop it.

They overpumped too much money into the economy....too much too fast was the problem. Everyone said so when they done it....but everyone was watching the stock market rise and too busy celebrating their very temporary successes to care.

Of course someone was going to be left holding the bag....and SVB is just one of those who did.

Some people bought Crypto currencies....and they got crushed with stupid tax. Coinbase bank which initially sold at $350/share is now trading at $53/share and falling. (8% drop this weekend so far)


Let's see if any of the half of tech startups in the USA survives this one.

Again, we blame anyone but those responsible and in doing so, we protect them.

It was the management of the bank that caused the problem.

And the issues at SVB were the same issues we saw in 2005-2008 that led to the collapse of economies around the world.

GREED is the problem.

 

[JohnDB]

Again, we blame anyone but those responsible and in doing so, we protect them.

It was the management of the bank that caused the problem.

And the issues at SVB were the same issues we saw in 2005-2008 that led to the collapse of economies around the world.

GREED is the problem.

Well,
If the bank was classified as a large bank instead of a mid sized bank this wouldn't have happened.
Different (and necessary) rules apply then and again this wouldn't have happened.

So how did the 16th largest bank in America get classified as a mid sized bank?

 

[Dadoalex]

Well,
If the bank was classified as a large bank instead of a mid sized bank this wouldn't have happened.
Different (and necessary) rules apply then and again this wouldn't have happened.

So how did the 16th largest bank in America get classified as a mid sized bank?

True

It got that way when Trump rolled back Dodd-frank regulations at the behest of the SVB ownership.

BUT

It was still their greed that caused the problem.

It's part of what I've been trying to say here. Left/Right/Middle we blame one another and the real culprits walk free to strike again.

 

[Doc7505]

Are You Ready? Banks Postitioned For A Bail-in As Silicon Valley Bank Fails (FDIC, Fed Weigh Special Vehicle After SVB Collapses, AOC Alert!)​

Are You Ready? Banks Postitioned For A Bail-in As Silicon Valley Bank Fails (FDIC, Fed Weigh Special Vehicle After SVB Collapses, AOC Alert!)

Are you ready? Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine. In fact, banks in general are suffering from Fed rates increases due to…

confoundedinterest.net

2 Mar 2023 ~~ By Anthony B. Sanders

Are you ready?
Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine. In fact, banks in general are suffering from Fed rates increases due to holding of long-term Treasuries and MBS.
In fact, The Federal Reserve’s fight against inflation is causing serious problems, as exemplified by AOC. No, not THAT AOC. but bank Accumulated Other Comprehensive Income.

Accumulated Other Comprehensive Income (AOCI) are special gains and losses that are listed as special items in the shareholder equity section of a company’s balance sheet. The AOCI account is the designated space for unrealized profits or losses on items that are placed in the other comprehensive income category.
On the regulatory call reports, AOCI is added to regulatory capital. Since SVB’s AOCI was negative (because of its unrealized losses on AFS securities) as of Dec. 31, it lowered the company’s total equity capital. So a fair way to gauge the negative AOCI to the bank’s total equity capital would be to divide the negative AOCI by total equity capital less AOCI — effectively adding the unrealized losses back to total equity capital for the calculation.
Getting back to our list of 10 banks that raised similar red margin flags to those of SVB, here’s the same group, in the same order, showing negative AOCI as a percentage of total equity capital as of Dec. 31. We have added SVB to the bottom of the list. The data was provided by FactSet:

After Congress passed the greatly flawed Dodd-Frank banking legislation, bailouts of banks are prohibited. But bank BAIL-INs still exist. Banks use money from their unsecured creditors, including depositors and bondholders, to restructure their capital to stay afloat. Put simply, they can convert their debt into equity to increase their capital requirements. Although depositors run the risk of losing some of their deposits, banks can only use deposits in excess of the $250,000 protection provided by the Federal Deposit Insurance Corporation (FDIC).
In any case, the FDIC and Fed are weighing a special vehicle after SVB swiftly collapses. Special vehicle? Sounds an awful like the mega bank bailout of 2008 under Hank Paulson.


Commentary:
This is controlled demolition intended to drive us to the central bank digital currency when the bank runs begin.
Not to worry, The Fed and FDIC will be jury rigging the system with a bail in or a special purpose vehicle like last time when Lehman failed. Yellen will call for printing more money to offset te losses and inflation will increase.
Maoist Democrats have created the Inflation. This a classic example of "moneychangers" doing what "moneychangers" do, STEAL YOUR WEALTH.
The people who lost millions in SVB will presented with the option of a CBDC or their money will remain lost. People with $250,000 or less are FDIC insured... for now.

 

[JohnDB]

Are You Ready? Banks Postitioned For A Bail-in As Silicon Valley Bank Fails (FDIC, Fed Weigh Special Vehicle After SVB Collapses, AOC Alert!)​

Are You Ready? Banks Postitioned For A Bail-in As Silicon Valley Bank Fails (FDIC, Fed Weigh Special Vehicle After SVB Collapses, AOC Alert!)

Are you ready? Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine. In fact, banks in general are suffering from Fed rates increases due to…

confoundedinterest.net

2 Mar 2023 ~~ By Anthony B. Sanders

Are you ready?
Despite cries from Summers, Yellen and other the DC illuminati (Biden is oddly silent), US banks are NOT fine. In fact, banks in general are suffering from Fed rates increases due to holding of long-term Treasuries and MBS.
In fact, The Federal Reserve’s fight against inflation is causing serious problems, as exemplified by AOC. No, not THAT AOC. but bank Accumulated Other Comprehensive Income.

Accumulated Other Comprehensive Income (AOCI) are special gains and losses that are listed as special items in the shareholder equity section of a company’s balance sheet. The AOCI account is the designated space for unrealized profits or losses on items that are placed in the other comprehensive income category.
On the regulatory call reports, AOCI is added to regulatory capital. Since SVB’s AOCI was negative (because of its unrealized losses on AFS securities) as of Dec. 31, it lowered the company’s total equity capital. So a fair way to gauge the negative AOCI to the bank’s total equity capital would be to divide the negative AOCI by total equity capital less AOCI — effectively adding the unrealized losses back to total equity capital for the calculation.
Getting back to our list of 10 banks that raised similar red margin flags to those of SVB, here’s the same group, in the same order, showing negative AOCI as a percentage of total equity capital as of Dec. 31. We have added SVB to the bottom of the list. The data was provided by FactSet:

After Congress passed the greatly flawed Dodd-Frank banking legislation, bailouts of banks are prohibited. But bank BAIL-INs still exist. Banks use money from their unsecured creditors, including depositors and bondholders, to restructure their capital to stay afloat. Put simply, they can convert their debt into equity to increase their capital requirements. Although depositors run the risk of losing some of their deposits, banks can only use deposits in excess of the $250,000 protection provided by the Federal Deposit Insurance Corporation (FDIC).
In any case, the FDIC and Fed are weighing a special vehicle after SVB swiftly collapses. Special vehicle? Sounds an awful like the mega bank bailout of 2008 under Hank Paulson.


Commentary:
This is controlled demolition intended to drive us to the central bank digital currency when the bank runs begin.
Not to worry, The Fed and FDIC will be jury rigging the system with a bail in or a special purpose vehicle like last time when Lehman failed. Yellen will call for printing more money to offset te losses and inflation will increase.
Maoist Democrats have created the Inflation. This a classic example of "moneychangers" doing what "moneychangers" do, STEAL YOUR WEALTH.
The people who lost millions in SVB will presented with the option of a CBDC or their money will remain lost. People with $250,000 or less are FDIC insured... for now.

USD Coin is in the dumper too....it was heavily deposited in SVB.

It's running $0.40/$1.00 currently.

 

[Independent thinker]

"1st, the collapse had "nothing to do with Trump or Dodd-Frank" and more to do with an "unusual confluence of events."

"The bank "dealt almost exclusively with tech firms which usually rely on continuously rolling over large debts" which means that the firms are "not paying off their debt but simply taking out new debt to pay off the old."

"2nd, SVB put a disproportionate amount of its cash into long-term bonds. Ordinarily, that’s not a bad strategy, but it’s unwise when interest rates are zero because those rates must rise eventually.

When rates rise, bond prices fall. This is because an investor with the choice to buy an existing bond at a low rate or a new bond at a high rate will choose the new bond since it’s a better return on investment.

If you want to sell the old bond with its lower interest rate, you must be willing to sell it at a discount; otherwise, no one will buy it."

"SVB's undiversified clientele meant "too many depositors needed cash all at once" forcing the liquidation of bonds that had lost value and a "death spiral" quickly ensued."

To highly efucated,intelligent people,this clearly spells out the fact that the BI-PARTISAN law Trump signed into law had NOTHING to do with the Silicon Valley Bank's collapse.


Democrats, however, are desperate to avoid being blamed for the second-largest bank collapse in United States history.

Liberals blame Trump for Silicon Valley Bank collapse citing 2018 bipartisan bill

Liberals took to social media to place blame on former President Trump after FDIC regulators shut down Silicon Valley Bank on Friday after it lost $2 billion.

www.foxbusiness.com

And here I thought they were going to blame it on Reagan or W.

 

[Toddsterpatriot]

SVB’s head of Risk Management was consumed with many of the Bank’s Woke Initiatives in and around LBGTQ and Migrant work issues. Baby Risk Managers need to be 100 percent focused on the Bank’s risk exposure. I don’t care if the side initiatives were Woke initiatives or Sports Fantasy Leagues. The focus needs to be Risk Management.

In Silicon Valley, not being Woke is a Risk.

 

[Toddsterpatriot]

From the time:

The bill’s passage was a defeat for progressive Democrats, who strongly opposed easing regulations for some banks, warning that doing so would likely trigger another financial crisis.

RELATED: What’s in the Senate banking bill

“This legislation threatens to undo important rules protecting us from risk,” Sen. Sherrod Brown, the top Democrat on the banking panel, said earlier this week on the Senate floor. “This legislation again puts taxpayers on the hook for bailouts.”

Progressives pointed to several critical changes in the bill that would release more than two dozen regional banks from stricter oversight by the Fed and would make it easier for Wall Street banks to fight off existing regulations.

“Buried down in the details of the bill are more landmines for American families” Sen. Elizabeth Warren, a Massachusetts Democrat, said on the Senate floor ahead of the chamber’s vote. “Washington has become completely disconnected from the real problem in people’s lives.”

https://edition.cnn.com/2018/03/14/politics/banking-bill-vote-mike-crapo/index.html

So they were right but the lobbyists won.... Banking Lobby found the the GOP are far easier to bribe than Progressive Democrats..

Thanks for pointing that out easy...

Dodd-Frank didn't eliminate interest rate risk.
Glass-Stegall didn't stop banks from writing or buying crappy mortgages.

 

[Circe]

The Federal Reserve caused the run on the bank by raising interest rates seven times in 2022.

AND they raised interest rates to fight the out-of-control inflation caused by the helicopter money dropped all over the country after they stupidly stopped the U.S. economy "for two weeks to flatten the curve," suuuurrrrrre, That went on and on for months and months and so did the helicopter drops of money, which caused the inflation, duh.

 

[Circe]

What is "transgenderism"?

Female impersonators, mainly.

 

[Toddsterpatriot]

SVB got away with some sort of fraud....

To only be classified as a "mid sized bank" by the Federal government was in itself a crime. Because if it was classified as a large bank (which they were) then more regulations come into place and stress testing of their balance sheets and investments are required.

However,
Now we will see several viable tech startups absolutely scrambling for cash. Some won't make it.

The officers at SVB probably need to be held criminally liable for exercising their options and dumping their stocks last month and last week. They knew that the bank was insolvent and in trouble....they knew that over investing in T-Bills was a bad idea.

But since they did dumb stuff....they need to pay the stupid tax of losing that money.

They knew that the bank was insolvent and in trouble....they knew that over investing in T-Bills was a bad idea.

If they had only been in T-Bills, US Treasuries 12 months or less, they'd have been ok.