https://www.foxnews.com/opinion/economy-tank-banks-reeling-inflation-sky-high-biden-telling
Are you angry yet? You should be. Our economy is slowing, banks are reeling, inflation remains scorching-high, real incomes are dropping, home prices are falling and Americans everywhere are becoming poorer by the minute.
On top of everything else, now we have the failures of Silicon Valley Bank and Signature Bank, infuriating bailouts and the resulting panic over banks. As with nearly everything that has gone wrong on their watch, including the inexcusable border chaos, the catastrophic pullout from Afghanistan and harmful inflation, the go-to response by the White House has been to blame President Trump.
Specifically, to blame Trump for signing legislation that loosened regulations on regional banks in 2018.That was Joe Biden’s message in the pitiful 5-minute address in which he tried but utterly failed to reassure the nation that our banking system is sound.
Here’s what Biden didn’t say: they knew. Regulators knew that Silicon Valley Bank was on the brink of failure. Supervisors spotted fatal weaknesses at the tech lender last summer, including some deemed “matters requiring immediate attention”; they told SVB management last fall that its model was flawed and could result in a run on deposits.
Despite the grave warning, the New York Times reports, management failed to change course and supervisors failed to act. By early this spring, SVB was in yet another review, this one on its risk management practices. Bottom line: there were none.
In other words, there were plenty of regulations and processes in place to prevent the catastrophe that occurred at SVB. Critics have assailed the San Francisco Fed, the supervisory authority, and its chief Mary Daly, for negligence. Some have rightly said that having SVB CEO Greg Becker on the overseer Fed board posed an obvious and dangerous conflict of interest.
It is hard to dismiss those who assert that the eagerness with which the Fed, the Treasury and the White House stepped in to bail out SVB and Signature Bank, caught in SVB’s backdraft, stemmed from the cozy relationships and giant political donations that Democrats receive from the tech community. It is, indeed, one big Happy Valley.