And excellent breakdown of why SVB died and why they don’t deserve a bailout.
(mobile.twitter.com)
Comments (16)
sorted by:
They almost surely took these risks with some assurances that if this happened they would be covered, considering their clientele.
It'll just be quiet, behind the scenes and off the books. Publicly they'll fail, privately the largest investors will get their money back and then some.
Nobody will see jail time for mismanagement since everything they did was legal, just tremendously stupid.
Yeah, this seems most likely. No one will actually learn from this.
I'm all for jailing silicon valley types but why would you jail anything for legal but stupid things?
In an ideal world lobbying for changes just to abuse them at peoples expense should fall under criminal mismanagement in certain industries, this being one of them.
Frankly I think lobbying as an entire industry should be outlawed and incredibly heavy fines levied. No reason for that nonsense to exist.
What is it when I contact my local representative to suggest my opinion?
That depends are you getting paid for contacting your local representative to push a specific opinion?
There's a big difference between lobbying and politicking.
What is it when I don't have time or the know how to do so, and you, my good friend and neighbour do. And since we have the same interests you do it on my behalf because you've done it before and my local rep knows you and will answer your calls?
My point is that the line is very ill defined.
Is there any way to ban corporate lobbying but not ban this?
I don't think so.
https://www.axios.com/2023/03/11/silicon-valley-bank-paid-bonuses-fdic
Imagine thinking anyone at such as "institution" deserves a bonus with money owed to depositors.
Jail every single one of the fuckers involved. ( one can dream a banker be held responsible one day ).
Reminds me of my ( public ) university, where the administrative council would vote themselves big bonuses as the public-funded university was operating at a deficit.
You can't balance the books, yet you think you're entitled to more taxpayers' money for such a shit job?
I mean they have a diversity hire as their chief of financial risk
His name checks out.
that foreigner will ensure them a bailout, because it's the new american preferred by the stewards.
The simple (and obvious) solution for this is to have mandatory federal insurance for any bank operating in the states, based on the amount of assets it holds.
If they fail, this insurance pays out some percentage of their deposits (say 60% - 80%, just to keep investors on their toes as well). Banks employing executives from other banks that failed (ahem) would pay higher insurance as a result.
This is NOT a complicated problem beyond "how do we burn out corruption from our institutions?"
Their friends will get a bailout behind the scenes, and if anyone points it out loudly enough they'll get dogpiled by the globohomo media until they shut up. Anyone who isn't willing to play ball with them won't get shit. They'll allow this to be bad enough and have the news amplify it to the point people are shaken and don't trust banks nearly as much anymore, but then they'll graciously push their fedcoins even harder so they have an even tighter grip on your money and start to push for removing banks and other forms of currency to reduce your options and herd you into their bullshit GovCoin. The whole fuckin' thing's planned.
Looking at this now (the fed just ordered a bailout…)
It is during these times of banking stress you can see what their real priority is :
Inflation is 6+%.
Banking system loses money.
Which one do they care about more?
Of course they turn the money printers on and debase the currency to bailout banks… Even while inflation is the highest is my lifetime.