The collapse of SVB and the partial repeal of Dodd-Frank
By Remember when Trump and the Republican leadership, in collaboration with a critical group of moderate and conservative Democrats, rolled back some of the regulations Dodd-Frank placed on regional banks? Well:
Some banking experts on Friday pointed out that a bank as large as Silicon Valley Bank might have managed its interest rate risks better had parts of the Dodd-Frank financial-regulatory package, put in place after the 2008 crisis, not been rolled back under President Trump.
In 2018, Mr. Trump signed a bill that lessened regulatory scrutiny for many regional banks. Silicon Valley Bank’s chief executive, Greg Becker, was a strong supporter of the change, which reduced how frequently banks with assets between $100 billion and $250 billion had to submit to stress tests by the Fed.
Mr. Becker, who had been on the San Francisco Fed’s board of directors, was no longer on the board as of Friday, a Fed spokesperson said.
The new “Republican populism” has the same policy agenda as Paul Ryan.
Meanwhile, another example of “every libertarian is a socialist if they and/or their buddies make a bad investment”:
[Gilbert Gottfried voice] The venture capitalists!