Forbes Magazine: How Trump’s Deregulation Sowed The Seeds For Silicon Valley Bank’s Demise

[Care4all]

I criticize Republicans plenty. On this topic -Banking Regulation-how can I when I’ve seen Democrats over regulate US into a banking crisis when these shit-for-brains thought it was more important to lend based on race vs. risk. Also, no one has yet to answer a fundamental question as to why Democrats didn’t undo Trump Banking policies in more than two years while it only took them hours to regulate up the oil and gas?

Deregulation was a cause of the 2007/8 crisis as well....

 

[Care4all]

In 2018, SVB was a $50 billion bank.

Yeah, so? Did they go bust in 2018? Once they go over $50 billion, they are no longer mid to small, and Would have met big bank status....regulations.

 

[Lesh]

.

Forbes had listed Silicon Valley Bank one of the best banks in America for five years consecutively ... And named it as a "Finacial All-Star".
Silicon Valley Bank was set to receive an award for being one of the Best Banks in America tomorrow.

All that ... Even after Bloomberg News reported Silicon Valley Bank had ...
"mark-to-market losses in excess of $15 billion at the end of 2022 for securities held to maturity".

It's safe to say that Silicon Valley Bank really didn't know crap about Sustainability after all ...
And didn't really have a grasp of the consequences in Zero-Net investments ... Puns intended ...

.​

Well apparently they were wrong. Must not have looked to closely

 

[hadit]

How long before we start hearing proposals to have the government take over and run private banks, you know, because reasons and risk and stuff?

 

[BlackSand]

Well apparently they were wrong. Must not have looked to closely

.

That was the point of posting the comment ...
Albeit ... No bank can survive a "run on the money" by their Major Investors.

Forbes is just playing games and politics trying to blame someone else ...
When the bullshit they were pushing the day before the bank failed ... Still couldn't "float the boat".

.​

 

[Lesh]

.

That was the point of posting the comment ...
Albeit ... No bank can survive a "run on the money" by their Major Investors.

Forbes is just playing games and politics trying to blame someone else ...
When the bullshit they were pushing the day before the bank failed ... Still couldn't "float the boat".

.​

With proper reserves a bank can withstand a month… and that’s the point

 

[EvilCat Breath]

.

That is true to a point ... No bank can survive a run of the majority of its major investors withdrawing their money.

The problem with Silicon Valley Bank also had to do with the fact that their major investors ... Are known as being a tight-knit group.
The have a reputation for having a "herd mentality" ... And specific to the Silicon Valley Futures and Growth Investments.
They go to the same places ... Have the same financial advisors ... And it is a specific "crowd of folks".

Someone indicates that you might not want to be the first crazy person to take your money out ... But you don't want to be last person to try either ...
Then add the fact that they can move their money from their cell phone ... The bank is going to fail.

.​

The bank had most of its investments in long term holding. Very little in easily liquidated short term. Inflation put the squeeze on investors to cash in short term investment. Boom.

 

[toobfreak]

I want to share with you an article that explains how Trump's deregulation led to the collapse of Silicon Valley Bank

In other words, your theory is that banking cannot exist and function properly without monstrous governmental oversight! Bigger government is better government!

The article says that Trump signed a law in 2018 that weakened the rules for banks

TRANSLATION: gave the banks more freedom to operate.

Now we are paying the price for this Trump law. They sold us out to the big banks and put our economy at risk.

You should learn the difference between a coincidence and a connection. Thank god Trump was in office for four years to save you idiots from having to look all the way back to GW Bush to find some "cause" for another disaster under Biden! Of course, that just wouldn't be the same as blaming Trump!

Gee, I bet it was Trump too who put that wrinkle in the carpet that Biden tripped over going up the ramp to Air Force One!!! And Trump loosened the ballooning regulations that allowed China to send spy balloons over us too! That Orange Bastard!

 

[BlackSand]

The bank had most of its investments in long term holding. Very little in easily liquidated short term. Inflation put the squeeze on investors to cash in short term investment. Boom.

.

Oh ... there's a lot of factors involved with Silicon Valley Bank failing ...
But it only fails when the investors want to withdraw their money and the bank doesn't have the money "on hand".

It is a liquidity issue ...
But Reserves and everything else ... Cannot handle all the major investors deciding to withdraw their money.
There is one thing a Bank cannot hold in Reserve ... That one thing is Investor Confidence.
When they want out ... They want out.

.​

 

[Lesh]

.

Oh ... there's a lot of factors involved with Silicon Valley Bank failing ...
But it only fails when the investors want to withdraw their money and the bank doesn't have the money "on hand".

It is a liquidity issue ...
But Reserves and everything else ... Cannot handle all the major investors deciding to withdraw their money.
There is one thing a Bank cannot hold in Reserve ... That one thing is Investor Confidence.
When they want out ... They want out.

.​

Except that never happens. “All the investors “ DON’T withdraw their money at once.

By demanding a certain level of liquidity bank runs are rare.

Having no regs in that regard basically kills the entire banking system.

Banks would NEVER be able to handle even small runs… or if they had all their assets liquid simply would not exist

 

[dudmuck]

In other words, your theory is that banking cannot exist and function properly without monstrous governmental oversight! Bigger government is better government!


TRANSLATION: gave the banks more freedom to operate.


You should learn the difference between a coincidence and a connection. Thank god Trump was in office for four years to save you idiots from having to look all the way back to GW Bush to find some "cause" for another disaster under Biden! Of course, that just wouldn't be the same as blaming Trump!

Gee, I bet it was Trump too who put that wrinkle in the carpet that Biden tripped over going up the ramp to Air Force One!!! And Trump loosened the ballooning regulations that allowed China to send spy balloons over us too! That Orange Bastard!

View attachment 765628

 

[AntonToo]

HAHAHAHAHAHAHAHAAAAAAAA
So predictable that you demented avenger subverted demoralized zombies would blame Trump for this.

Is there ANY consequence of Trump's presidency that he could be reasonably held responsible for?

 

[toobfreak]

Democrats 2019 - "Stop blaming everything on the last President!!"
Democrats 2023 - Blame everything on the last President

What can you expect?

• 2006: Democrats enact banking changes leading to SNL collapse and economic downturn.
• 2008: Obumma gets in and rather than improve the economy, he presides over deepest Keynesian economic recession in 70 years.
• 2009: Obumma blames it all on past administration, often referring to sweeping broom as he mentions cleaning up the mess left him by someone else.

Problem is that Trump left Biden a golden calf. Except for the global Wuhan China pandemic that hit everyone, Trump's four years were gold. Literally EVERY problem this country is facing today was manufactured by Joe R. Biden.

 

[BlackSand]

Except that never happens. “All the investors “ DON’T withdraw their money at once.

.

They did Friday at Silicon Valley Bank ...
It failed when it couldn't cover the $1.4 Billion the major investors were trying to get out ...
Stop saying it never happens ... When that's exactly what happened.

And ... As the list grows ... I bet it happens to around 400 more banks before it is over.

.​

 

[Lesh]

.

They did Friday at Silicon Valley Bank ...
It failed when it couldn't cover the $1.4 Billion the major investors were trying to get out ...

.​

You just proved my point. Customers were only trying to remove 1.4 billion of the 200 billion SVB had in assets and they couldn’t cover it.

That is obviously nowhere CLOSE to “all” of anything.

They couldn’t cover it because they weren’t required to have that much liquidity. They should have been.

I doubt that means anything to you

 

[BlackSand]

You just proved my point. Customers were only trying to remove 1.4 billion of the 200 billion SVB had in assets and they couldn’t cover it.

That is obviously nowhere CLOSE to “all” of anything.

They couldn’t cover it because they weren’t required to have that much liquidity. They should have been.

I doubt that means anything to you

.

Your point is pointless ... Why are you even trying to argue?
The bank has already failed ... More are failing as we speak ... There's no need for you to suggest it cannot happen ...

.​

 

[Lesh]

.

Your point is pointless ... Why are you even trying to argue?
The bank has already failed ... More are failing as we speak ... There's no need for you to suggest it cannot happen ...

.​

I kinda thought the discussion was beyond you. I didn’t say it couldn’t happen.

Go read my post again

 

[Natural Citizen]

Debating bank shortfalls and investor response to them is a waste of time and speaks to nothing of the root cause. These are mere symptoms of a lack of liquidity across the wider landscape. Debating symptoms completely avoids the root cause and only keeps people ignorant to the reality of what's happening.

 

[Lesh]

Debating bank shortfalls and investor response to them is a waste of time and speaks to nothing of the root cause. These are mere symptoms of a lack of liquidity across the wider landscape. Debating symptoms completely avoids the root cause and only keeps people ignorant to the reality of what's happening.

So you appear to be claiming that you know the “root cause”
By all means share

 

[BlackSand]

Debating bank shortfalls and investor response to them is a waste of time and speaks to nothing of the root cause. These are mere symptoms of a lack of liquidity across the wider landscape. Debating symptoms completely avoids the root cause and only keeps people ignorant to the reality of what's happening.

.

Yeah ... And there's a bunch of things that look odd ... Like when the banks with the "proper" social scores can borrow money at a negative interest rate ...
While the Fed is raising rates on everyone else.

That's not speculative in nature ... But when in contrast ... Might actually mean something.
It might not be a direct root cause ... But how wide do we really want to cast the net ...

.​