Silicon Valley Bank chief pressed Congress to weaken risk regulations

[cbabe]

https://www.theguardian.com/business/2023/mar/11/silicon-valley-bank-weaken-risk-regulations-svb

Silicon Valley Bank chief pressed Congress to weaken risk regulations

CEO Greg Becker personally led the bank’s half-million-dollar push to reduce scrutiny of his institution – and lawmakers obliged

Rebecca Burns, David Sirota, Julia Rock & Andrew Perez of the Lever
Sat 11 Mar 2023 08.50 EST
Last modified on Sat 11 Mar 2023 09.17 EST
This story was first published in the Lever

Eight years before the second-largest bank failure in American history occurred this week, the bank’s president personally pressed Congress to reduce scrutiny of his financial institution, citing the “low risk profile of our activities and business model”, according to federal records reviewed by the Lever.

Three years later – after the bank spent more than half a million dollars on federal lobbying – lawmakers obliged.

On Friday, California regulators shut down the Silicon Valley Bank (SVB), a top lender to venture capital firms and tech startups, and the Federal Deposit Insurance Corporation took it over, following a bank run by its customers. The bank reportedly did not have a chief risk officer in the months leading up to the collapse, while more than 90% of its deposits were not insured.

In 2015, SVB’s president, Greg Becker, appeared before a Senate panel to push legislators to exempt more banks – including his own – from new regulations passed in the wake of the 2008 financial crisis. Despite warnings from some senators, Becker’s lobbying effort was ultimately successful.

…more…

(Regulations? Like for trains? Rather crash than pay cash.)

(How much of this was planned with Powell increasing interest rates, force Biden from office?)

[republianmushroom]

1. Well the bonus would have been greater if risk regulations were less.

[Timewas]

2. As long as there is

As along as bribery (lobbying) is legal this type of result is inevitable .

[in2herbs]

3. Create 2 banks, one for personal accounts and one for businesses. Let the business banks create

their own regulatory scheme. How quickly will business owners want accounts at these banks?

[cbabe]

4. Had that until intensive lobbying broke it @late 90s.

https://en.wikipedia.org › wiki › Glass–Steagall_Legislation

Glass-Steagall legislation - Wikipedia

The Glass-Steagall legislation describes four provisions of the United States Banking Act of 1933 separating commercial and investment banking. [1] The article 1933 Banking Act describes the entire law, including the legislative history of the provisions covered herein.