to meet withdrawal demands. The bank’s tech-focused client base was particularly hungry for cash after influxes from venture capital firms slowed in recent months.of California, blame bipartisan legislation signed in 2018 by then-President Donald Trump that eased regulations for all but the largest banks, including institutions like Silicon Valley Bank.
in The New York Times."These recent bank failures are the direct result of leaders in Washington weakening the financial rules.","Unfortunately, the last administration rolled back some of these requirements. I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again and to protect American jobs and small businesses.
Here, we’ll look at the evidence for and against each of these theories regarding the bank’s downfall, with the caveat that the internal workings of Silicon Valley Bank are still being unearthed.The legislation signed by Trump in 2018 represented a scaling back of the landmark Dodd-Frank Act, which lawmakers passed in 2010 and then-President Barack Obama signed.
The 2018 revisions of Dodd-Frank, formally known as the Economic Growth, Regulatory Relief and Consumer Protection Act, maintained stringent oversight for the largest banks but eased regulations for smaller and midsized banks. Whereas the original Dodd-Frank law mandated stricter capital and liquidity standards for institutions with $50 billion in assets, the rewrite raised the minimum for such requirements to those with at least $250 billion in assets.
FED failed to follow their own guidelines and your 'experts' claim the bipartisan law from 2018 is the blame?
The root cause of SVB's collapse was management failure to see interest rate risk & too concentrated a deposit base: issues any finance grad could detect. Regulators asleep at the switch allowed the risk to grow, but did not cause the risk. SVB mgmt s/b banned from bank mgt 4ever
Poor progressive policies is the death of this bank.
No... only the Biden experts claim that.
Default blame is Oval Office prerogative.
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