Regulators Had the Tools Needed to Prevent Bank Failures, Experts Say

[excalibur]

So Joe Biden lied? No surprise there.

Then we have the Gov. Newsom connection here as well.

​

After bank runs led regulators to shutter Silicon Valley Bank and Signature Bank, a Monday speech by President Joe Biden pinned blame on his predecessor, Donald Trump. Legislation signed by Trump in 2018 freed regional banks like Silicon Valley from strict federal banking rules.​

​

But state and federal regulators seem to have had the tools they needed to prevent the two bank failures. “The major flaws here were in supervision, not regulation,” says Karen Petrou, a longtime bank industry analyst at Federal Financial Analytics.​

​

The problems at Silicon Valley and Signature stemmed from overly concentrated risks. Silicon Valley Bank’s investments, loans, and deposits mostly came from technology start-ups. When those commercial customers started yanking deposits, the bank suffered a run. Signature’s customers started bolting in fear of the New York bank’s cryptocurrency lending.​

​

Supervisors at state banking agencies could have raised concerns about these concentrations, says Kathryn Dick, a former deputy comptroller at the Office of the Comptroller of the Currency who is now a banking consultant.​

​

“The regulators had the tools they needed,” says Dick. “If I were sitting at a banking agency, I’d look at the banks that fall between the Big Eight on down to $100 billion in assets, and make sure I have my arms around concentration at these institutions.” Both Silicon Valley and Signature fall in that range.​

​

...​

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“I don’t know what kind of stress-testing is being done in banks below the $250 billion threshold today, but regulators can use their existing authority to require any bank to conduct some form of stress testing,” says Dick. “You don’t need new regulations to do that.”​

Regulators Had the Tools Needed to Prevent Bank Failures, Experts Say

Banking experts says the crises at at Silicon Valley Bank and Signature Bank could have been averted with sharper supervision.

www.barrons.com

 

[Moonglow]

So Joe Biden lied? No surprise there.

Then we have the Gov. Newsom connection here as well.

​

After bank runs led regulators to shutter Silicon Valley Bank and Signature Bank, a Monday speech by President Joe Biden pinned blame on his predecessor, Donald Trump. Legislation signed by Trump in 2018 freed regional banks like Silicon Valley from strict federal banking rules.​

​

But state and federal regulators seem to have had the tools they needed to prevent the two bank failures. “The major flaws here were in supervision, not regulation,” says Karen Petrou, a longtime bank industry analyst at Federal Financial Analytics.​

​

The problems at Silicon Valley and Signature stemmed from overly concentrated risks. Silicon Valley Bank’s investments, loans, and deposits mostly came from technology start-ups. When those commercial customers started yanking deposits, the bank suffered a run. Signature’s customers started bolting in fear of the New York bank’s cryptocurrency lending.​

​

Supervisors at state banking agencies could have raised concerns about these concentrations, says Kathryn Dick, a former deputy comptroller at the Office of the Comptroller of the Currency who is now a banking consultant.​

​

“The regulators had the tools they needed,” says Dick. “If I were sitting at a banking agency, I’d look at the banks that fall between the Big Eight on down to $100 billion in assets, and make sure I have my arms around concentration at these institutions.” Both Silicon Valley and Signature fall in that range.​

​

...​

​

“I don’t know what kind of stress-testing is being done in banks below the $250 billion threshold today, but regulators can use their existing authority to require any bank to conduct some form of stress testing,” says Dick. “You don’t need new regulations to do that.”​

Regulators Had the Tools Needed to Prevent Bank Failures, Experts Say

Banking experts says the crises at at Silicon Valley Bank and Signature Bank could have been averted with sharper supervision.

www.barrons.com

Ahh,, so rich people can't handle money or finances they need the govt to do that for them.

 

[whitehall]

Were the bank regulators ordered by the Biden administration to ignore violations? Is the whole world freaking corrupt?

 

[1srelluc]

Says a lot for CA state regulators.

 

[struth]

Ahh,, so rich people can't handle money or finances they need the govt to do that for them.

what? you think only rich people keep their money in a bank? wow

 

[Silent Warrior]

A good friend of mine ran a community bank in a small Midwestern town. He said whenever the FDIC came for an examination they spent their time complaining he didn't have enough loans to minorities (none happened to live in that town) and not a high enough percentage of loans to women. They spent very little time trying to see if he was solvent or not.

 

[Moonglow]

A good friend of mine ran a community bank in a small Midwestern town. He said whenever the FDIC came for an examination they spent their time complaining he didn't have enough loans to minorities (none happened to live in that town) and not a high enough percentage of loans to women. They spent very little time trying to see if he was solvent or not.

The banker I knew as an uncle claimed that the FDIC gave him kisses, Hershey kisses.

 

[Augustine_]

So Joe Biden lied? No surprise there.

Then we have the Gov. Newsom connection here as well.

​

After bank runs led regulators to shutter Silicon Valley Bank and Signature Bank, a Monday speech by President Joe Biden pinned blame on his predecessor, Donald Trump. Legislation signed by Trump in 2018 freed regional banks like Silicon Valley from strict federal banking rules.​

​

But state and federal regulators seem to have had the tools they needed to prevent the two bank failures. “The major flaws here were in supervision, not regulation,” says Karen Petrou, a longtime bank industry analyst at Federal Financial Analytics.​

​

The problems at Silicon Valley and Signature stemmed from overly concentrated risks. Silicon Valley Bank’s investments, loans, and deposits mostly came from technology start-ups. When those commercial customers started yanking deposits, the bank suffered a run. Signature’s customers started bolting in fear of the New York bank’s cryptocurrency lending.​

​

Supervisors at state banking agencies could have raised concerns about these concentrations, says Kathryn Dick, a former deputy comptroller at the Office of the Comptroller of the Currency who is now a banking consultant.​

​

“The regulators had the tools they needed,” says Dick. “If I were sitting at a banking agency, I’d look at the banks that fall between the Big Eight on down to $100 billion in assets, and make sure I have my arms around concentration at these institutions.” Both Silicon Valley and Signature fall in that range.​

​

...​

​

“I don’t know what kind of stress-testing is being done in banks below the $250 billion threshold today, but regulators can use their existing authority to require any bank to conduct some form of stress testing,” says Dick. “You don’t need new regulations to do that.”​

Regulators Had the Tools Needed to Prevent Bank Failures, Experts Say

Banking experts says the crises at at Silicon Valley Bank and Signature Bank could have been averted with sharper supervision.

www.barrons.com

Socialism for the ruling class has been in place since Reagan. If you really think it started 2 years ago then you're not trying and you probably don't actually care.

 

[struth]

Socialism for the ruling class has been in place since Reagan. If you really think it started 2 years ago then you're not trying and you probably don't actually care.

how did he do that?

 

[Augustine_]

how did he do that?

His entire economic policy, called Reaganomics by most. Look it up. For this crisis in particular, his massive expansion of the Fed is directly related. There are other great hits like letting companies manipulate their stock prices with stock buybacks, destroying the labor movement, beginning the mass offshoring of American jobs, etc. There's plenty more in there if you're interested.

 

[struth]

His entire economic policy, called Reaganomics by most. Look it up. For this crisis in particular, his massive expansion of the Fed is directly related. There are other great hits like letting companies manipulate their stock prices with stock buybacks, destroying the labor movement, beginning the mass offshoring of American jobs, etc. There's plenty more in there if you're interested.

how’s any of that socialism?

stock buybacks? that was a practice going o. long before Reagan. Destroyed the labor movement? what? he drastically got the UE rate down

How’d he “massive expand the Fed?” the Federal Register got smaller under his administration

 

[Augustine_]

how’s any of that socialism?

stock buybacks? that was a practice going o. long before Reagan. Destroyed the labor movement? what? he drastically got the UE rate down

How’d he “massive expand the Fed?” the Federal Register got smaller under his administration

Socialism = redistribution of wealth. In this case, it's redisribution of wealth towards the wealthiest people and entities in the country. Wage growth died under Reagan because of his policies, starting the massive income gap between the ruling class and the rest of us. The clamp put on stock buybacks due to the crash of 1929 was removed by Reagan, which is part of the reason no tax cut since Reagan has ever "trickled down." It just goes into wealthy investor pockets. Regarding the Fed, Reagan made it so every institution that a U.S. citizen can deposit money in is now allowed to borrow from the Fed, and then the Fed just started printing away. Now we wonder why there is inflation.

 

[struth]

Socialism = redistribution of wealth. In this case, it's redisribution of wealth towards the wealthiest people and entities in the country. Wage growth died under Reagan because of his policies, starting the massive income gap between the ruling class and the rest of us. The clamp put on stock buybacks due to the crash of 1929 was removed by Reagan, which is part of the reason no tax cut since Reagan has ever "trickled down." It just goes into wealthy investor pockets. Regarding the Fed, Reagan made it so every institution that a U.S. citizen can deposit money in is now allowed to borrow from the Fed, and then the Fed just started printing away. Now we wonder why there is inflation.

no socialism isn’t redistribution of wealth…more over reagan policies created MORE wealth, it didn’t take simply what was there and pass it around

 

[Augustine_]

no socialism isn’t redistribution of wealth…more over reagan policies created MORE wealth, it didn’t take simply what was there and pass it around

Sure go with that

 

[2aguy]

So Joe Biden lied? No surprise there.

Then we have the Gov. Newsom connection here as well.

​

After bank runs led regulators to shutter Silicon Valley Bank and Signature Bank, a Monday speech by President Joe Biden pinned blame on his predecessor, Donald Trump. Legislation signed by Trump in 2018 freed regional banks like Silicon Valley from strict federal banking rules.​

​

But state and federal regulators seem to have had the tools they needed to prevent the two bank failures. “The major flaws here were in supervision, not regulation,” says Karen Petrou, a longtime bank industry analyst at Federal Financial Analytics.​

​

The problems at Silicon Valley and Signature stemmed from overly concentrated risks. Silicon Valley Bank’s investments, loans, and deposits mostly came from technology start-ups. When those commercial customers started yanking deposits, the bank suffered a run. Signature’s customers started bolting in fear of the New York bank’s cryptocurrency lending.​

​

Supervisors at state banking agencies could have raised concerns about these concentrations, says Kathryn Dick, a former deputy comptroller at the Office of the Comptroller of the Currency who is now a banking consultant.​

​

“The regulators had the tools they needed,” says Dick. “If I were sitting at a banking agency, I’d look at the banks that fall between the Big Eight on down to $100 billion in assets, and make sure I have my arms around concentration at these institutions.” Both Silicon Valley and Signature fall in that range.​

​

...​

​

“I don’t know what kind of stress-testing is being done in banks below the $250 billion threshold today, but regulators can use their existing authority to require any bank to conduct some form of stress testing,” says Dick. “You don’t need new regulations to do that.”​

Regulators Had the Tools Needed to Prevent Bank Failures, Experts Say

Banking experts says the crises at at Silicon Valley Bank and Signature Bank could have been averted with sharper supervision.

www.barrons.com

But if they kept the banks from failing, they couldn't take control of them.......