Amusing that people are fleeing to BofA, JPM, Wells Fargo as if they are safe How many DOA car loans is BofA sitting on? How many 2.7% mortgages did WF underwrite? How much dead commercial RE is backed by JPM? And they ALL bought US Treasuries yielding nothing Go look at top banks by % of uninsured deposits...I believe First Republic is #10, way down the list SVB was only guilty of being small When landlords really s…
Little appreciated facts that IMHO were the fundamental drivers a) CEO of SVB was on the Board of Govs of SF Fed Reserve, the entity that is supposed to supervise and regulate banks b) He had earlier lobbied Congress to relax stress test requirements so the SVB would be in the exempt group. So when you have a bank regulator (SF Fed board member) lobbying Congress to deregulate his own bank (so much to unpack here) do…
The SF Fed has a nine-member board. Three members are appointed by the Board of Governors of the Federal Reserve System, who in turn are appointed by the president and confirmed by Congress.
The remaining six members are elected by banks.
You can certainly make the case that banks should have less influence over the fed. But this isn't at all unique to SVB.
See https://www.frbsf.org/our-district/governance/boards-directo...