My favorite quote that I've seen about this entire ordeal is "there are no libertarians in a bank run".
Libertarians would prefer not to be subjected to the current banking system
SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
71–80 of 201 posts
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#72Earlier quoted context omitted.
In fairness, the train crash had bipartisan support.
[flagged]
This has been directly refuted by NTSB Chair Jennifer Homendy. The brake rule in question would not have applied to that train either way.
https://twitter.com/JenniferHomendy/status/16263793610278584...
You're contributing to misinformation by repeating these false claims.
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#73Earlier quoted context omitted.
OK, I see what you meant now. FWIW: employing the phrase "corruption in the federal government" to refer to what was clearly lawfully drafted and correctly passed legislation marks you as kind of a wingnut, so I interpreted your point to be "see? we can't trust the government!" and not "the government did something bad". The fact that the 2018 bill was a bad bill with bad effects doesn't make it "corrupt". Congress d…
I think you would do well to not try to instantly bucket people into "my political tribe" or "the enemy political tribe." Not only is it lazy and harmful, you just aren't good at it. Plenty of people on the left would describe the relationship between members of congress and banking institutions to be corrupt.
To add; "corrupt" and "legal" are frequently the same thing. Corruption is often about misbehaving within the confines of laws you wrote specifically to take advantage of.
I've started to wonder if we have any other kind, frankly.
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#74Lol somehow always blaming “deregulation” and politicians I’ll tell you what, it’s not regulators that caused this. IMO Banks need less regulation (and more smaller banks) and need to fail more (and have more jail time). It’s the banking executives and business analysis team at fault here. Just like it’s the startups error for failing to have multiple bank accounts. Some advice, be robust and self reliant. Assume eve…
>Be robust, that’s your job as an individual or founder.
100%
I learned the hard way not to "trust systems" when it comes to important aspects of your life.
In college, I found some transfer requirements confusing. I utilized the college's guidance center. They told me they were sure that I needed class X, Y and Z. Of course, as it turned out, I didn't need _any_ of them. So an entire year and thousands wasted. I know mistakes can happen... I know I probably should have done the work to check for myself but I figured they would know more anyways.
Maybe a priceless lesson in the long run though...
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#75[dead]
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#76This seems pretty knee-jerk, especially given, that the current glances that the business was probably too conservatively managed. The problem here was not holding safe assets - but the value of the government bonds depreciating dramatically because of the rising interest rates and a flush supply of higher interest rates due to massive government deficit spending. It’s also a reflection of the extremely aggressive ma…
It was 0% interest rates before then that actually caused problems. Raising rates should have happened sooner but trump threatened to fire Powell if he did.
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#77But the ultimate crux is done by the Federal Reserve Board for allowing $50+B --> non-bank "Finally, the Board has determined not to impose enhanced prudential standards on nonbank financial companies supervised by the Board through this final ($50B stress test) rule." Not seeing any partisan hacks there, unless you count the financial ones. https://www.govinfo.gov/content/pkg/FR-2014-03-27/html/2014-...
ELI5?
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#78Earlier quoted context omitted.
OK, I see what you meant now. FWIW: employing the phrase "corruption in the federal government" to refer to what was clearly lawfully drafted and correctly passed legislation marks you as kind of a wingnut, so I interpreted your point to be "see? we can't trust the government!" and not "the government did something bad". The fact that the 2018 bill was a bad bill with bad effects doesn't make it "corrupt". Congress d…
I think you would do well to not try to instantly bucket people into "my political tribe" or "the enemy political tribe." Not only is it lazy and harmful, you just aren't good at it. Plenty of people on the left would describe the relationship between members of congress and banking institutions to be corrupt.
[deleted]
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#79Earlier quoted context omitted.
It does mean you can't fight it with little advocacy groups or well-meaning think tanks. According to history, you need a strong labor movement led by principled socialists.
Competition does wonders to keep power in check, while improving value for consumers. Neither shareholders nor organized labor likes that feature. Almost all monopolies are the result of government interference
In the absence of regulation, all industries trend towards monopolies as big players block out and buy up competitors.
Capitalism abhors competition.
Re: SVB Used Former McCarthy Staffers to Weaken Regulations, Lobby FDIC
#80But the ultimate crux is done by the Federal Reserve Board for allowing $50+B --> non-bank "Finally, the Board has determined not to impose enhanced prudential standards on nonbank financial companies supervised by the Board through this final ($50B stress test) rule." Not seeing any partisan hacks there, unless you count the financial ones. https://www.govinfo.gov/content/pkg/FR-2014-03-27/html/2014-...
ELI5?
I can't remember all the specifics, but after the 2008 crash banks with a certain levels of holding have to pass stress test showing they can survive scenarios like this. I think the old limit was 50 billion but go changed to I think 150 billion which puts SVB below the threshold for the stress test.