Crash the train to stop it

[Rajoo]

Originally Posted by finnbow

So, you're arguing that the modified Dodd-Frank was insufficiently strong to prevent the SBV collapse? Let's see if you argue in favor of tightening up regulations to prevent the next one. Maybe we should prohibit Republican super donors (like Peter Thiel) from backing such banks and then leading runs on them, thereby creating a crisis (and then demanding from government to be made whole by the regulators they vehemently oppose).

Contrary to your assertion, I did not make an argument that either the derailments or the SVB collapse were immediately and directly tied to deregulation, but that these events "can be reasonably tied to GOP deregulation fervor (at least in the public's imagination) and that accordingly the GOP is "eager to blame anyone but themselves, from Pete Buttigieg to DEI inititiatives." The Dems have a far more credible argument than those Republicans blaming "wokeness" banks and DEI initiatives.

Ignoring Whell for now, here is how it all started.

On Friday, the major lender for tech startups was shut down by regulators. The commercial bank, among the 20 largest in the country, was caught in a free-fall bank run. Some of it seemed set off after a letter from SVB’s CEO Greg Becker, describing to shareholders a $1.8 billion loss on the sale of U.S. treasuries and mortgage-backed securities; high interest rates backgrounded the letter. Peter Thiel, a massive backer of the likes of J.D. Vance and Blake Masters, had his venture capital firms direct all their portfolio companies to withdraw their funds from the bank.

And then the floodgates burst open.

There was also a run on their stocks prior to this and insider trading is suspected. I am sure this will come out as to who started shorting SVB's stocks.

Though we are based in Santa Clara, we bank with much smaller local business banks than SVB, though the one we were with for several years got acquired by Zion.

https://newrepublic.com/post/171105/...y-bank-failure