2023-04-03
In a world of unlimited government guarantees for deposits, how could such a disastrously run bank as SVB even plausibly fail? The depositor discipline was swift, no doubt, but if funding isn't flighty banks can stay their zombie course without limit. https://www.washingtonpost.com/ ...
Washington Post
Sources: SVB bought long-term assets that paid more interest based on a misplaced profit-driven strategy, falling out of compliance with its internal risk model
and over the concerns of some staffers — SVB executives simply changed the model's assumptions, according to the former employees and securities filings.” https://www.washingtonpos...
2023-03-16
Barney Frank gets the @ichotiner interview. It goes like you would expect. https://www.newyorker.com/...
New York Magazine
Q&A with Signature Bank board member Barney Frank on the bank's downfall, the impact on crypto, weakening Dodd-Frank in 2018, tougher regulation, and more
pushes back at DFS' assertion that Signature wasn't closed due to an anti-crypto animus... whole thing worth reading @jenwieczner 👏👏 https://nymag.com/... Jake Chervinsky / @jcherv...
2023-03-14
“Bailout” is a pejorative term with no clear conceptual meaning (never mind that it has no legal meaning at all). But if bailout means government elimination of downside after private capture of upside then, yes, uninsured SVB depositors were bailed out. https://twitter.com/...
U.S. Department of the Treasury
The US Treasury, Federal Reserve, and the FDIC say all Silicon Valley Bank depositors will be “fully” protected, and their money will be available on March 13
“Bailout” is a pejorative term with no clear conceptual meaning (never mind that it has no legal meaning at all). But if bailout means government elimination of downside after private capture of upside then, yes, uninsured SVB depositors were bailed out. https://twitter.com/...
New York Times
Signature's and SVB's collapse was aided by GOP-led Dodd-Frank reforms that raised the “stress test” threshold from $50B to $250B, pushed for by SVB executives
Officials with Signature and Silicon Valley banks, which regulators seized in recent days, called for looser financial requirements for midsize banks.
2023-03-13
“Bailout” is a pejorative term with no clear conceptual meaning (never mind that it has no legal meaning at all). But if bailout means government elimination of downside after private capture of upside then, yes, uninsured SVB depositors were bailed out. https://twitter.com/...
U.S. Department of the Treasury
The US Treasury, Federal Reserve, and the FDIC say all Silicon Valley Bank depositors will be “fully” protected, and their money will be available on March 13
WASHINGTON, DC — The following statement was released by Secretary of the Treasury Janet L. Yellen …