Well, lobbied against a certain provision of the bill that was widely unpopular. Far be it from me to defend Barney Frank but that also had a direct benefit to the bank for whose board he sat on, Signature. It loosened some oversight for banks with $50B-$250B in assets. This is the portion of Dodd-Frank that is being reported in prog media as "Trump rolled back the bank regulation that caused SVB to fail". The particular rollback passed the Senate 67-31 and the House 258-159 in 2018. Funny that no other banks failed as a result, just the one ran by the Silicon Valley geniuses.
Given that I have financed furniture in the past, high finance isn't exactly my forte so (anyone) please correct me if I'm wrong.
The Biden administration pumped several trillion dollars into the economy that caused it to overheat as we came out of the pandemic. Soaring inflation ensued (which even I could see coming). Money for this type of massive spending largely comes from the sale of government bonds. The government then encouraged large banks to acquire said bonds when interest rates were near zero. Then, to stem the afore mentioned SOARING INFLATION, the Fed needed to raise interest rates. Repeatedly. Rates went from practically 0% to 4.75%. During this time SVB thought it would be awesome to sell $20B in government bonds at a steep loss in a move that would lead Moody's to downgrade SVB's credit rating which precipitated the bank run from the only people SVB served who all think the fucking same.
In summation: BIDEN BOOM!!
Given that I have financed furniture in the past, high finance isn't exactly my forte so (anyone) please correct me if I'm wrong.
The Biden administration pumped several trillion dollars into the economy that caused it to overheat as we came out of the pandemic. Soaring inflation ensued (which even I could see coming). Money for this type of massive spending largely comes from the sale of government bonds. The government then encouraged large banks to acquire said bonds when interest rates were near zero. Then, to stem the afore mentioned SOARING INFLATION, the Fed needed to raise interest rates. Repeatedly. Rates went from practically 0% to 4.75%. During this time SVB thought it would be awesome to sell $20B in government bonds at a steep loss in a move that would lead Moody's to downgrade SVB's credit rating which precipitated the bank run from the only people SVB served who all think the fucking same.
In summation: BIDEN BOOM!!
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