Democrats blamed the demise of Silicon Valley Bank on banking regulation changes signed by former President Donald Trump. Republicans blamed the bank’s focus on 'woke' investments. Here's what finance and banking experts said about those explanations.
to meet withdrawal demands. The bank’s tech-focused client base was particularly hungry for cash after influxes from venture capital firms slowed in recent months.of California, blame bipartisan legislation signed in 2018 by then-President Donald Trump that eased regulations for all but the largest banks, including institutions like Silicon Valley Bank.
in The New York Times."These recent bank failures are the direct result of leaders in Washington weakening the financial rules.","Unfortunately, the last administration rolled back some of these requirements. I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again and to protect American jobs and small businesses.
Here, we’ll look at the evidence for and against each of these theories regarding the bank’s downfall, with the caveat that the internal workings of Silicon Valley Bank are still being unearthed.The legislation signed by Trump in 2018 represented a scaling back of the landmark Dodd-Frank Act, which lawmakers passed in 2010 and then-President Barack Obama signed.
The 2018 revisions of Dodd-Frank, formally known as the Economic Growth, Regulatory Relief and Consumer Protection Act, maintained stringent oversight for the largest banks but eased regulations for smaller and midsized banks. Whereas the original Dodd-Frank law mandated stricter capital and liquidity standards for institutions with $50 billion in assets, the rewrite raised the minimum for such requirements to those with at least $250 billion in assets.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Silicon Valley Turned on Silicon Valley BankThe fallout from Silicon Valley Bank threatens to engulf Silicon Valley—and has put the rest of the banking system on edge
Read more »
Bank regulators seize Silicon Valley Bank in largest bank failure since the Great RecessionThe bank failed after depositors — mostly technology workers and venture capital-backed companies — began withdrawing their money creating a run on the bank.
Read more »
Can the Government Contain a Banking Crisis? - The Journal. - WSJ PodcastsWhen Silicon Valley Bank imploded last week, it was the second biggest bank failure in U.S. history. Then, over the weekend, another bank, Signature Bank, was also taken over by the government. WSJ financial editor Charles Forelle explains what kicked off this banking crisis and how the government is scrambling to contain it. Further Reading: - How Silicon Valley Turned on Silicon Valley Bank - Silicon Valley Bank Closed by Regulators, FDIC Takes Control - Were SVB and Signature Bank Just Bailed Out by the U.S. Government?
Read more »
Silicon Valley Bank's UK branch shut down by Bank of EnglandThe Bank of England (BoE) released a statement on Mar. 10 stating that it will be applying to the court to place Silicon Valley Bank UK branch (SVB UK) into a “Bank Insolvency Procedure.' It added that in the interim, the firm will 'stop making payments and deposits.'
Read more »
‘Nip the bank in the bud’: Calls to rescue collapsed Silicon Valley Bank galoreTech celebrities and pundits have urged the U.S. federal government to pressure other banks to take over the defunct Silicon Valley Bank (SVB) in order to protect uninsured deposits.
Read more »
Bank of London bids to acquire Silicon Valley Bank's UK armThe Bank of London is leading a consortium of private equity firms seeking to purchase SVB's arm in the United Kingdom.
Read more »