Quote:
Originally Posted by Giantone
Why Trump is being called out in the Silicon Valley Bank collapse
https://news.yahoo.com/why-trump-bei...173805604.html
.Some Democrats have been blaming Trump-era regulations for Silicon Valley Bank's collapse.
.In 2018, Trump signed into law a bill that rolled back provisions in the Dodd-Frank Act and loosened oversight over banks.
Sen. Bernie Sanders said SVB's failure is a "direct result" of those rollbacks.
.Former President Donald Trump is catching heat for Silicon Valley Bank's collapse.
The reason goes back to 2018.
On Friday, regulators shut down Silicon Valley Bank following a tumultuous few days of failing to raise capital and a flood of customers withdrawing their funds from the bank. After crypto-friendly Signature Bank shut down on Sunday, as well, the US Treasury, Federal Reserve, and Financial Deposit Insurance Corporation made a controversial move by giving depositors a bailout, vowing to "fully protect" them from any financial losses. Normally, that would only be guaranteed for losses up to $250,000.
Lawmakers on both sides of the aisle criticized the federal agencies' actions, but some Democrats seized on Trump's rollback of consumer protections in the Dodd-Frank Act in 2018 as a primary contributor to SVB's collapse. The rollback lessened scrutiny for banks with under $250 billion in assets, meaning the landmark, post-financial crisis law would only applied to a handful of big banks.
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As it’s been established, the roll back of the Trump bipartisan bill wasn’t why the collapse happened. but the incompetence of Biden economic policies where he dismissed an inflationary signs and called it transitory, his 1.9 trillion in unnecessary spending along with the stopping of student loan payments which contributed to more inflation. So the fed and treasury responded too late to obvious inflation, caused a credit crisis with bonds.
But really, SVB are complete morons and seemed to focus more on woke bullshit, D&I than risk controls