Silicon Valley Bank's board of directors and management failed
federalreserve.gov
Silicon Valley Bank's board of directors and management failed
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Re: Silicon Valley Bank's board of directors and management failed
#2Interesting to confirm what most people suspected
Re: Silicon Valley Bank's board of directors and management failed
#3the response of the oversight committee was to place blame on local management and call to increase oversight.
What about the endless oversight so famously wrapped around every bank right now? Is it true that you cannot in reality start a Bank in the USA without an Oracle license? due to the vast and arcane reporting requirements already in place for decades?
Does this lead to a situation where the innovators are actually using micro-flaws in supervision rules and magnifying that by thousands of times compared to a "well-run" Bank, directly contradicting the aims of oversight and specifically due to excessive and byzantine existing oversight?
Does this Federal Reserve have the ability to make rules that work for Banks in 2023 after the extended-lifetime cash QE ?
Re: Silicon Valley Bank's board of directors and management failed
#4the response of the oversight committee was to place blame on local management and call to increase oversight. What about the endless oversight so famously wrapped around every bank right now? Is it true that you cannot in reality start a Bank in the USA without an Oracle license? due to the vast and arcane reporting requirements already in place for decades? Does this lead to a situation where the innovators are act…
> response of the oversight committee was to place blame on local management
The Fed's review found "four key takeaways on the causes of the bank's failure." The first fingers management. Nos. 2 to 4 criticise supervisors.
> What about the endless oversight so famously wrapped around every bank right now
SVB was not subject to liquidity coverage ratios (LCRs), a regulatory rollback pushed through in 2017 [1]. Had SVB been, they would have breached their LCR in March of 2022.
> Is it true that you cannot in reality start a Bank in the USA without an Oracle license?
No. Kentland Federal Savings and Loan doesn't use computers [2].
> Does this Federal Reserve have the ability to make rules that work for Banks in 2023 after the extended-lifetime cash QE
Yes, the same book other banks follow. (Our pretending HTM securities always preserve value and are liquid assets is an ongoing farce that is being fixed.)
[1] https://apnews.com/article/banking-crisis-congress-lobbying-...
[2] https://www.indiatimes.com/worth/news/america-smallest-bank-...
Re: Silicon Valley Bank's board of directors and management failed
#5the response of the oversight committee was to place blame on local management and call to increase oversight. What about the endless oversight so famously wrapped around every bank right now? Is it true that you cannot in reality start a Bank in the USA without an Oracle license? due to the vast and arcane reporting requirements already in place for decades? Does this lead to a situation where the innovators are act…
It would be nice if we could "put our money where our mouth is" by opting out of the traditional banking system. Unfortunately, the same regulators responsible for the banking system seem increasingly intent on eliminating the freedom to engage with any potential alternatives to it.
Re: Silicon Valley Bank's board of directors and management failed
#6the response of the oversight committee was to place blame on local management and call to increase oversight. What about the endless oversight so famously wrapped around every bank right now? Is it true that you cannot in reality start a Bank in the USA without an Oracle license? due to the vast and arcane reporting requirements already in place for decades? Does this lead to a situation where the innovators are act…
It would be nice if we could "put our money where our mouth is" by opting out of the traditional banking system. Unfortunately, the same regulators responsible for the banking system seem increasingly intent on eliminating the freedom to engage with any potential alternatives to it.
You can. If you're in the US, sign up for a brokerage and park your uninvested cash in a government securities (primarily US treasuries) invested money market fund [1]. You're now backed by the Federal Reserve instead of FDIC and their oversight of fractional reserve banking [2] This is a nice hack around the fact that the Fed won't approve a Narrow Bank [3].
[1] https://www.investor.gov/introduction-investing/investing-ba...
[2] https://archive.is/HXfvw (Bloomberg: Matt Levine: Banking Gets a Bit Narrower)
[3] https://www.chicagobooth.edu/review/safest-bank-fed-wont-san...
(not investing advice)
Re: Silicon Valley Bank's board of directors and management failed
#7Earlier quoted context omitted.
It would be nice if we could "put our money where our mouth is" by opting out of the traditional banking system. Unfortunately, the same regulators responsible for the banking system seem increasingly intent on eliminating the freedom to engage with any potential alternatives to it.
You can. If you're in the US, sign up for a brokerage and park your uninvested cash in a government securities (primarily US treasuries) invested money market fund [1]. You're now backed by the Federal Reserve instead of FDIC and their oversight of fractional reserve banking [2] This is a nice hack around the fact that the Fed won't approve a Narrow Bank [3]. [1] https://www.investor.gov/introduction-investing/invest…
I'm talking about cryptocurrency.
Re: Silicon Valley Bank's board of directors and management failed
#8Earlier quoted context omitted.
You can. If you're in the US, sign up for a brokerage and park your uninvested cash in a government securities (primarily US treasuries) invested money market fund [1]. You're now backed by the Federal Reserve instead of FDIC and their oversight of fractional reserve banking [2] This is a nice hack around the fact that the Fed won't approve a Narrow Bank [3]. [1] https://www.investor.gov/introduction-investing/invest…
I'm talking about cryptocurrency.
[deleted]
Re: Silicon Valley Bank's board of directors and management failed
#9Earlier quoted context omitted.
You can. If you're in the US, sign up for a brokerage and park your uninvested cash in a government securities (primarily US treasuries) invested money market fund [1]. You're now backed by the Federal Reserve instead of FDIC and their oversight of fractional reserve banking [2] This is a nice hack around the fact that the Fed won't approve a Narrow Bank [3]. [1] https://www.investor.gov/introduction-investing/invest…
I'm talking about cryptocurrency.
[deleted]
Re: Silicon Valley Bank's board of directors and management failed
#10Earlier quoted context omitted.
You can. If you're in the US, sign up for a brokerage and park your uninvested cash in a government securities (primarily US treasuries) invested money market fund [1]. You're now backed by the Federal Reserve instead of FDIC and their oversight of fractional reserve banking [2] This is a nice hack around the fact that the Fed won't approve a Narrow Bank [3]. [1] https://www.investor.gov/introduction-investing/invest…
I'm talking about cryptocurrency.
Good luck opening that can of worms on Hackernews