Current Events > Funny how we have the money to bailout SVB, but not for student loans.

(+) Yeah! (+)

Hmm

No one's laughing.

SVB did not get bailed out. All banks pay into a fund and that fund is being used to guarantee people get their money back. SVB is also ceasing to operate.

That's not how bailouts work

It's a receivership, not a bailout.

SVB?

I just wish white collar criminals would do serious time when they rip off untold millions.

garan posted...

I just wish white collar criminals would do serious time when they rip off untold millions.

Nothing here was criminal, it was just bad decision making.

CommonStar posted...

Hmm

Account holders got bailed out. SVB got pink slips.

[LFAQs-redacted-quote]


Which regulations did he revert?

ScazarMeltex posted...

To be fair the GOP immediately started trying to do that the instant they were passed.

I dunno. I think they were preoccupied with birth certificates at the time.

Takuya_Lee posted...

SVB did not get bailed out. All banks pay into a fund and that fund is being used to guarantee people get their money back. SVB is also ceasing to operate.

Hmm where do banks get that money to put into a fund?

[LFAQs-redacted-quote]


SVB bank has nothing to do with predatory lending practices or mortgages

Dan_Haren- posted...

SVB bank has nothing to do with predatory lending practices or mortgages

The bill was seen as a significant rollback of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act
At the bill signing, Trump commented on the previous banking reforms, saying "they were in such trouble. One size fits all those rules just don't work," per
Trump also said at the time that the Dodd-Frank regulations were "crushing community banks and credit unions nationwide."
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 $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.

https://www.businessinsider.com/silicon-valley-bank-bernie-sanders-donald-trump-blame-2023-3

Dan_Haren- posted...

SVB bank has nothing to do with predatory lending practices or mortgages

Yes... yes it did.

Takuya_Lee posted...

SVB did not get bailed out. All banks pay into a fund and that fund is being used to guarantee people get their money back. SVB is also ceasing to operate.

Hell, the plan will be to sell the assets of SVB to fund the uninsured deposits. If they sell the assets for enough, I don't even think this fund will have to be used.

And this is how bank failures work and have been working. The banks close down and assets are closed to make depositors whole

Prestoff posted...

Yes... yes it did.

No, no it didn't.

Dan_Haren- posted...

SVB bank has nothing to do with predatory lending practices or mortgages

Ehh, SVB lobbied for the removal of some of the banking laws in 2018, with the rationale that they shouldn't seen as one of the larger banks, and to therefore not be tied to stricter regulations.

Which is what I think the guy is talking about

They specialize in tech startups. Obviously thats risky business but calling it predatory is simply not accurate and you literally can't say that without knowing the intricacies of their business plans. For this reason there is more volatility in what they do. The had a shit ton of cash and simply made bad investments at the worst possible timing. I've said this in other topics but they simply bad poor decisions based on risk/reward spread.

That came back to bite them in the ass, and once that word gets out, panic ensues. And panic at a small bank, whether its valid or not, becomes a self fulfilling prophecy - hence why Signature Bank failed and why most small banks right now have falling stock prices.