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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump Era Roll Back of Bank Regulations Resurfaces Amid SVB Collapse
Amid the collapse of Silicon Valley Bank (SVB), some commentators have claimed a Trump-era rollback of financial regulations may have contributed to the situation.
While largely unknown outside California's Silicon Valley tech corridor, SVB has for decades been a go-to financial institution for the country's technology and health start-ups. One of the 20 biggest banks in the United States, it had over $200 billion in assets by the end of last year, according to CNN.
As of Friday, however, SVB was left in freefall as clients began a run on the institution, spurred on by higher interest rates and other factors, resulting in a spiraling chain reaction that has threatened to sink the institution and leave its customers in financial jeopardy.
In the fallout of Friday's run on the bank, some reports noted that a rollback of banking regulations by former President Donald Trump might have weakened SVB's ability to manage risks associated with interest rates. In 2018, according to The New York Times, Trump signed a bill that axed regulatory requirements for regional banks with less than $250 billion in assets.
Link to tweet
https://www.msn.com/en-us/money/markets/trump-era-roll-back-of-bank-regulations-resurfaces-amid-svb-collapse/ar-AA18vuPe
Cause ya know free dumb.
uponit7771
(90,335 posts)... should've known they couldn't hold those bonds to maturity
BlueWaveNeverEnd
(7,894 posts)ymetca
(1,182 posts)is what should have happened to the big Wall Street banks back in 2008. Federal regulators should have seized control and found out all the malfeasance and started perp-walking folks on national television. For the vast majority of Americans, that would have given us a better long-term position than what we're in now.
But because we didn't do what the actual laws required, and we the taxpayer bailed them out instead, we're all taking it on the chin.
Another inexorable collapse of our financial system is almost baked in at this point. It's only a matter of time.
Fiendish Thingy
(15,568 posts)17 Dems in senate voted for the bill, overcoming a filibuster.
Not much else passed during Trumps administration (outside of reconciliation bills), but this did
Looks like SVB had some spare change to spread around.
MiniMe
(21,714 posts)W_HAMILTON
(7,859 posts)Why are you giving cover for the Republicans that were primarily behind passing this by blaming a few Democrats?
Fiendish Thingy
(15,568 posts)Im not giving cover to the republicans, Im shining light on the Dems who joined and made it possible.
SVB lobbied hard for this bill, and Im sure that included cutting some big checks.
Just 10 years after the GFC, and there are some who think we wont remember.
W_HAMILTON
(7,859 posts)And it's also giving very much this:
If Republicans voted against it in the same manner as Democrats did, it would have been soundly defeated. If a small minority of Republicans had gone against their party's consensus and voted against it the same way a small minority of Democrats went against their party's consensus and voted for it, it would have also been defeated.
Stop blaming Democrats for the bad policies of Republicans.