SVB chief pressed lawmakers to weaken bank risk regulations
1–10 of 102 posts
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#2with no dog in this fight, I see this as some enforcement grudge match from NY capital old-school on California capital new-school, triggered by zero tolerance for crypto.
IMO - almost all the leveraged finance in the last 20 years is already over-the-top and mostly "fake money".. who gets the axe first is politics. Supporting statement to this heresy? When the "real economy" tanked due to covid-19 lockdown, the paper tigers of Bloomberg continued to gain wealth, not a little, a lot. Where does that come from? ad sales alone? Oil and Gas Arab cash leveraged out into a hundred counter-parties with big names? Whatever the "technical" explanation.. lots of musical chairs games are up today. cheers
edit cannot help but pile on here.. Roku (who I have never heard of as a consumer) had two Billion USD in cash ? wtf
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#3So gradually it's all opening up. The scams at those levels are most impacting one to people. I only see more fallouts in future.
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#4with no dog in this fight, I see this as some enforcement grudge match from NY capital old-school on California capital new-school, triggered by zero tolerance for crypto. IMO - almost all the leveraged finance in the last 20 years is already over-the-top and mostly "fake money".. who gets the axe first is politics. Supporting statement to this heresy? When the "real economy" tanked due to covid-19 lockdown, the pape…
> Roku (who I have never heard of as a consumer)
Roku's been around for a very long time building decent streaming boxes for TVs that don't cost too much. I've been a customer since Netflix started streaming.
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#5with no dog in this fight, I see this as some enforcement grudge match from NY capital old-school on California capital new-school, triggered by zero tolerance for crypto. IMO - almost all the leveraged finance in the last 20 years is already over-the-top and mostly "fake money".. who gets the axe first is politics. Supporting statement to this heresy? When the "real economy" tanked due to covid-19 lockdown, the pape…
It's hard to take your analysis seriously with no knowledge of Roku, a major brand who has existed for a very long time.
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#6with no dog in this fight, I see this as some enforcement grudge match from NY capital old-school on California capital new-school, triggered by zero tolerance for crypto. IMO - almost all the leveraged finance in the last 20 years is already over-the-top and mostly "fake money".. who gets the axe first is politics. Supporting statement to this heresy? When the "real economy" tanked due to covid-19 lockdown, the pape…
Why? Why don’t you see it as a financial institution taking on a bunch of risk and a regulator attempting to mitigate that risk, then when that risk materializes the public has to step in anyway?
It’s the archetypical story of financial history for thousands of years. You can tell that’s the case because we even have FDIC and it is able to shut down a bank on Friday and open it back up on Monday. Literally the oldest story in the book!
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#7Note that the 2015 lobbying was done by Greg Becker in person. Money quote is at the end:
> In 2019, Becker was elected to serve on the board of directors at the Federal Reserve Bank of San Francisco. Becker left the board on Friday.
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#8I want to have sympathy for the depositors, but it is hard to knowing that they chose to keep their funds in an bank that was actively lobbying to weaken risk regulations.
There multiple products that would help in this situation, such as insurances and virtual accounts that split between multiple FDIC accounts/banks.
Bailing out these depositors would send the wrong message and encourage moral hazard, i.e., the belief that someone else will always bear the costs of risky behavior. Educating entrepreneurs and investors on the importance of diversification, due diligence, and risk management would create a more resilient and sustainable innovation ecosystem, where success is based on merit and hard work, not on cronyism or government intervention.
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#9with no dog in this fight, I see this as some enforcement grudge match from NY capital old-school on California capital new-school, triggered by zero tolerance for crypto. IMO - almost all the leveraged finance in the last 20 years is already over-the-top and mostly "fake money".. who gets the axe first is politics. Supporting statement to this heresy? When the "real economy" tanked due to covid-19 lockdown, the pape…
The fact that you've never heard of Roku doesn't really say much other than you either living in a country where Roku is not available, or living under a rock.
Roku tends to get a lot of retail space, so if you've walked through any walmart electronic section, or bestbuy, or whatever you're guaranteed to see them.
Before smart TVs took off there was only Apple TV and Roku. No Chromecasts or Fire Sticks. Meaning if you couldn't pay the Apple tax, you went with Roku to get your Netflix.
Re: SVB chief pressed lawmakers to weaken bank risk regulations
#10So gradually it's all opening up. The scams at those levels are most impacting one to people. I only see more fallouts in future.
It's amazing how post 2008 nothing was learned by US and pretty much no major bank but top 10 is expected to have more than 5/10% of cash-like collateral of deposits.
In Europe, no single bank is allowed to have less than 100% collateral of deposits, not one, and yet they manage to make good money and profits nonetheless.