Bernie Sanders says Silicon Valley Bank's failure is the 'direct result' of a
Trump-era bank regulation policy
(snip)
Signing the bill into law meant that Trump was exempting smaller banks from stringent regulations and loosening rules that big banks had to follow. The law raised the asset threshold for "systematically important financial institutions" from $50 billion to $250 billion.
This meant that the Silicon Valley Bank which ended 2022 with about $209 billion in assets was no longer designated as a systematically important financial institution. As such, it was not subject to the tighter regulations that apply to bigger banks.
Sanders wrote in his Sunday statement that the Trump administration had disregarded all the lessons it should have learned from the 2008 Wall Street crash and the Enron scandal.
"Now is not the time for US taxpayers to bail out Silicon Valley Bank. If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions," he wrote.
(snip)
https://www.businessinsider.com/silicon-valley-bank-bernie-sanders-donald-trump-blame-2023-3
MichMan
(11,865 posts)Ocelot II
(115,580 posts)The bank has been liquidated, the executives fired, and the FDIC insurance for the depositors is, in fact, funded by other banks. The investors will not be compensated. Don't use this to grandstand about those evil millionaires and billionaires.
Casady1
(2,133 posts)that can survive a run.
Igel
(35,270 posts)Then FDIC, using previously paid "dues".
Then ... assessments on other banks.
Diamond_Dog
(31,897 posts)emulatorloo
(44,057 posts)Surely he knows this? He has been around for a long long time.
Uncle Joe
(58,276 posts)As for Bernie, I believe he's just making his views known ahead of the curve.
MichMan
(11,865 posts)Sen Sanders should show exactly what regulations were changed and how those specific changes caused this failure to occur.
It could very well be, but everyone jumped on the braking regulations causing the train derailment, when that ended up not being the cause, nor would it have applied to that train.
Igel
(35,270 posts)But CA regulators failed and then Fed Res regulators failed.
Third in line was the required stress test per statute.
Third.
This is like saying the East Palestine derailment resulted from Congressional action/Trump signing of regs that research showed would have minimal effect--when the actual cause was something completely different. Politicians politick.