The never-ending POTUS Election thread....

[touchdown]

Fed criticized for missing red flags before bank collapse

The Federal Reserve is facing stinging criticism for missing what observers say were clear signs that Silicon Valley Bank was at high risk of collapsing into what became the second-largest bank failure in U.S. history.

apnews.com

Critics point to many red flags surrounding Silicon Valley Bank, including its rapid growth since the pandemic, its unusually high level of uninsured deposits and its many investments in long-term government bonds and mortgage-backed securities, which tumbled in value as interest rates rose.

“It’s inexplicable how the Federal Reserve supervisors could not see this clear threat to the safety and soundness of banks and to financial stability,” said Dennis Kelleher, chief executive of Better Markets, an advocacy group.

Wall Street traders and industry analysts “have been publicly screaming about these very issues for many, many months going back to last fall,” Kelleher added.

 

[touchdown]

On Monday, Powell announced that the Fed would review its supervision of Silicon Valley to understand how it might have better managed its regulation of the bank. The review will be conducted by Michael Barr, the Fed vice chair who oversees bank oversight, and will be publicly released May 1.

“We need to have humility,” Barr said, “and conduct a careful and thorough review of how we supervised and regulated this firm and what we should learn from this experience.”

Silicon Valley’s CEO, Greg Becker, in the past had lobbied Congress for a lighter regulatory touch, and he served on the board of the Federal Reserve Bank of San Francisco until the day of the Silicon Valley collapse.

“I’m at a loss for words to understand how this business model was deemed acceptable by their regulators,” said Aaron Klein, a congressional aide who worked on the Dodd-Frank banking regulation law that was passed after the 2008 financial crisis.

 

[touchdown]

This is Good. From Cold Fusion:

Silicon Valley Bank, Signature Bank and Silvergate bank have all collapsed throwing up a warning signs that something horrible is happening in the economy. But what's the truth here? This is a story of incompetence, a changing economic environment and political lobbying.

 

[dbair1967]

So just yesterday the biggest fucking idiot this country has ever had for President said there was nothing wrong with the US banking system and today:

1) Stock Markets are being crushed all around the world, including here.
2) The entire US banking system outlook was downgraded to "negative" by Moody's
3) First Republic Bank is cut to "junk" status by S&P

Everybody that legitimately voted for these idiots should fucking never be allowed to vote again. How can people be this fucking stupid. These fucking libtards are 100% destroying this country.

FUCK YOU

 

[Dodger12]

Everybody that legitimately voted for these idiots should fucking never be allowed to vote again. How can people be this fucking stupid. These fucking libtards are 100% destroying this country.

Wait until 2024. There are people who will still vote for this madness while the country lies in ruin.....

 

[touchdown]

Treasury Secretary "Inflation is Transitory" Yellen testifies before the Senate

 

[dbair1967]

Another complete fucking idiot

 

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[touchdown]

The Details of how the 11 bank rescue package for First Republic Bank came to be.

https://www.cnn.com/2023/03/16/investing/first-republic-bank/index.html

Quote:

Treasury Secretary Janet Yellen on Thursday met privately in Washington with JPMorgan CEO Jamie Dimon before 11 banks agreed to deposit $30 billion in First Republic Bank to stabilize the teetering lender, according to two people familiar with the matter.

The meeting served as a culmination of what had been a series of conversations over the last two days between Yellen and other US officials and leaders from some of the country’s largest banks as they sought a private sector lifeline for the battered California bank.

Yellen had driven the effort from the government side, while Dimon led the effort to organize the bank executives that would eventually get behind the dramatic infusion of deposits.

Yellen first conceived of the idea of the largest US banks coming together to direct deposits toward First Republic, according to a separate source familiar with the matter. The move was seen as critical to stabilizing the bank’s deposit base – but also a critical signal to financial markets about both the bank and the US financial system.

 

[dbair1967]

Almost a rock solid guarantee that $30 billion just "disappears"

 

[touchdown]

Silicon Valley Bank said it was too small to need regulation. Now it’s ‘too big to fail’ | Rebecca Burns and Julia Rock

Student debts and underwater mortgages are private burdens, but corporate losses are matters of urgent public interest

www.theguardian.com

 

[touchdown]

SVB execs sold millions of their company stock in lead up to collapse, federal disclosures show

Former SVB President and CEO Greg Becker sold over $3.5 million of his company stock holdings on Feb. 27, according to a disclosure made to the SEC.

abcnews.go.com

In the days following SVB CEO Becker's sale of millions of dollars in his SVB shares and before the bank's collapse, the then-CEO appeared confident during remarks to an audience of investors, Wall Street analysts and technology executives attending a technology conference in San Francisco's Palace Hotel, according to a copy of his remarks obtained by ABC News.

One day after Becker's reported remarks, SVB announced a $1.8 billion loss on the sale of securities, including Treasury and mortgage bonds which had lost significant value over the previous year due to an aggressive series of interest rate hikes at the Federal Reserve. The bank laid out plans to raise more than $2 billion in an effort to shore up its balance sheet.

According to the New York Times, the week before Becker's confident projection at the tech conference – and then the bank's ultimate collapse – the rating agency Moody's had called to tell Becker "the banks bonds were in danger of being downgraded to junk." That would mean the call came around the same time Becker sold the over $3.5 million of his SVB common stock on Feb 27.

 

[Doomsday]

Trump thinks he's gonna be arrested.

Trump Claims His Arrest Is Imminent and Calls for Protests, Echoing Jan. 6 (Published 2023)

His indictment by a Manhattan grand jury is expected, but its timing is unclear.

www.nytimes.com

 

[dbair1967]

Yeah there's reports that say the Commie Biden admin and DOJ really want to see him cuffed up and have it broadcast on TV.

Elon Musk came out this morning and predicted if Dems do that they are setting themselves up for a massive blowout loss in the 2024 election.

 

[Doomsday]

Yeah there's reports that say the Commie Biden admin and DOJ really want to see him cuffed up and have it broadcast on TV.

Elon Musk came out this morning and predicted if Dems do that they are setting themselves up for a massive blowout loss in the 2024 election.

They think they can get him disqualified. They need to take a moment to read the Constitution.

 

[touchdown]

 

[touchdown]

Washington, March 17, 2023 -

Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), and the Ranking Member of the House Financial Services Committee, Maxine Waters (CA-43), announced a bipartisan hearing with federal financial regulators in response to the failures of Silicon Valley Bank (SVB) and Signature Bank to be held on March 29, 2023. The Committee will hold additional hearings as appropriate.

Witnesses:

The Honorable Martin J. Gruenberg, Chairman, Board of Directors of the Federal Deposit Insurance Corporation (FDIC)

The Honorable Michael S. Barr, Vice Chair for Supervision, Board of Governors of the Federal Reserve

Additional witness(es) may be added as the hearing date approaches.

“The House Financial Services Committee is committed to getting to the bottom of the failures of Silicon Valley Bank and Signature Bank,” said Chairman McHenry and Ranking Member Waters. “This hearing will allow us to begin to understand why and how these banks failed. As Chairman and Ranking Member, we take our oversight duties seriously. We are working around the clock to deliver answers to the American people in order to protect depositors, promote the safety and soundness of America’s banks, and strengthen our financial system. We will conduct this hearing without fear or favor to get the answers the American people deserve.”

McHenry, Waters Announce First Hearing on Silicon Valley Bank and Signature Bank Failures | Financial Services Committee

financialservices.house.gov

 

[touchdown]

Midsize US Banks Ask FDIC to Insure Deposits for Two Years

https://www.bloomberg.com/news/arti...ask-fdic-to-insure-all-deposits-for-two-years

A coalition of midsize US banks asked federal regulators to extend FDIC insurance to all deposits for the next two years, arguing the guarantee is needed to avoid a wider run on the banks.

“Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures,” the Mid-Size Bank Coalition of America said in a letter to regulators seen by Bloomberg News.

The group cited remarks by Treasury Secretary Janet Yellen that the backstops put in place so far will protect uninsured deposits only if regulators found it “necessary to protect the financial system.” That’s a category unlikely to include the smaller banks represented by the MBCA.

The expanded insurance program should be paid for by the banks themselves by increasing the deposit-insurance assessment on lenders that choose to participate in increased coverage, the group proposed.

The letter was sent to Yellen, the Federal Deposit Insurance Corp., the Comptroller of the Currency and the Federal Reserve.

 

[Creeper]

Trump thinks he's gonna be arrested.

Trump Claims His Arrest Is Imminent and Calls for Protests, Echoing Jan. 6 (Published 2023)

His indictment by a Manhattan grand jury is expected, but its timing is unclear.

www.nytimes.com

View attachment 11459

Supposedly the indictment is over the payoff to Stormy Daniels. Talk about a frivolous prosecution.

What should really anger everyone, not just Trump supporters is that congress had a slush fund for years that was used to pay off various victims of sexual abuse and other misdeeds by congressmen. That fund was set up with taxpayer money. Congress supposedly close the slush fund but taxpayers were never informed of who used the fund and why. Trump used his own money, which is perfectly legal and not that uncommon. The accusation that it was some kind of violation of campaign laws is ridiculous. John Edwards used campaign money, which is illegal, to set up his pregnant girlfriend in an apartment and pay her a living expenses yet he was not charge or indicted.

If the NY DA charges Trump then we know beyond any doubt we are at war.