Bernie Sanders says Silicon Valley Bank's failure is the 'direct result' of a

[Uncle Joe]

Trump-era bank regulation policy

(snip)

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 about $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.

Sanders wrote in his Sunday statement that the Trump administration had disregarded all the lessons it should have learned from the 2008 Wall Street crash and the Enron scandal.

"Now is not the time for US taxpayers to bail out Silicon Valley Bank. If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions," he wrote.

(snip)

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

[MichMan]

1. President Biden said there isn't any bailout

"Americans can have confidence that the banking system is safe. Your deposits will be there when you need them," Biden said from the White House. Biden said "no losses" would be born by taxpayers, and the money would come from the fees that banks pay into the Deposit Insurance Fund.

[Ocelot II]

2. The government isn't bailing out SVB, Bernie.

The bank has been liquidated, the executives fired, and the FDIC insurance for the depositors is, in fact, funded by other banks. The investors will not be compensated. Don't use this to grandstand about those evil millionaires and billionaires.

[Casady1]

4. There is no bank

that can survive a run.

[Igel]

8. The depositors are mostly funded by SVB assets.

Then FDIC, using previously paid "dues".

Then ... assessments on other banks.

[Diamond_Dog]

3. Right on, Bernie!

[emulatorloo]

5. Taxpayers aren't 'bailing out' SVP. The money comes from taxes paid by other banks.

Surely he knows this? He has been around for a long long time.

[Uncle Joe]

6. Do you believe this crisis is a direct result of Trump-era bank regulation policy?

As for Bernie, I believe he's just making his views known ahead of the curve.

[MichMan]

7. I haven't seen the details explaining exactly how it did in this particular instance.

Sen Sanders should show exactly what regulations were changed and how those specific changes caused this failure to occur.

It could very well be, but everyone jumped on the braking regulations causing the train derailment, when that ended up not being the cause, nor would it have applied to that train.

[Igel]

9. Yes, he should.

But CA regulators failed and then Fed Res regulators failed.

Third in line was the required stress test per statute.

Third.

This is like saying the East Palestine derailment resulted from Congressional action/Trump signing of regs that research showed would have minimal effect--when the actual cause was something completely different. Politicians politick.