From the time:"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, thatās not a bad strategy, but itās 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 itās 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
The billās 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: Whatās in the Senate banking bill
āThis legislation threatens to undo important rules protecting us from risk,ā Sen. Sherrod Brown, the top Democrat on the banking panel, said earlier this week on the Senate floor. āThis legislation again puts taxpayers on the hook for bailouts.ā
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.
āBuried down in the details of the bill are more landmines for American familiesā Sen. Elizabeth Warren, a Massachusetts Democrat, said on the Senate floor ahead of the chamberās vote. āWashington has become completely disconnected from the real problem in peopleās lives.ā
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...