Crash the train to stop it

[Rajoo]

Originally Posted by whell

The SVB failure is likely a one-off due to its niche. But the failure does bring to light that other banks with significant bond portfolios are similarly upside-down.

And who is to blame?

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

Anyone who doubted how detrimental Trump administration policies would be should analyze the damage unfolding for those trampled by Silicon Valley Bank’s collapse. On May 24, 2018, Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Reform Act”). This was a regulatory relief bill for regional and community bill, which bank lobbyists and numerous politicians had fought hard for.

The argument at the time was that many of the provisions in the Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) were ‘one size fits all.’ Despite any proof, those lobbying for the EGRRCPA argued that capital, liquidity, and stress requirements for regional and community banks would be detrimental to the economy. In a number of Forbes columns, I argued that the weakening of bank regulations under Trump would be the seeds for the next financial crisis.

Now that the Feds are bailing out SVB against their own insurance policies, how soon before the GOP starts bitching and moaning? Remember the words "To big to fail"? We are seeing this in action.

https://www.forbes.com/sites/mayraro...h=7206fd063432