Today on TAP: Better regulation would head off dubious rescues that only increase bank concentration.
FDIC
Posted inTAP
Morgan’s Takeover of First Republic: A Shady Sweetheart Deal
Today on TAP: The comptroller of the currency rejected other alternatives in the rush to have government underwrite Morgan’s latest coup.
Posted inEconomic Policy
Pre-Farewell to First Republic
The zombie bank is now in a staring match with potential purchasers and regulators. Ultimately, a failure of oversight caused this mess.
Posted inMoney, Politics, and Power
How a Firm Profiting From Deposit Insurance Caps Is Lobbying to Keep Them
IntraFi, a private equity–owned company that offers the wealthy a work-around to the $250,000 limit on FDIC insurance, sees an existential threat in universal deposit guarantees.
Posted inEconomic Policy
Silicon Valley Bank Purchaser Evades Tougher Regulatory Scrutiny
First Citizens only purchased a portion of SVB’s assets, leaving it under the $250 billion threshold for enhanced supervision.
Posted inEconomic Policy
The SVB Collapse Reveals the Class Bias in American Policymaking
When bankers blow their businesses up, it’s no-questions-asked bailout time. When student borrowers need relief, not so much.
Posted inEconomic Policy
David Sacks Justifies Bailout by Highlighting Elite Private Boarding School
Claiming that a failure to guarantee all Silicon Valley Bank deposits would hurt ‘mom-and-pop’ businesses, Sacks then chose the worst possible example.
Posted inEconomic Policy
If at First You Don’t Succeed on Executive Compensation …
Try, try again. Here’s the epic saga the Biden administration wants to add to.
Posted inEconomic Policy
Powell Blocked Mentions of Supervisory Failures From Bank Rescue Statements
The Fed chair resisted mentioning supervision, regulation, or accountability after the collapse of Silicon Valley Bank. His resistance delayed the announcement.
Posted inEconomic Policy
Behind the Venture Capitalist Bailout
Financial expert Daniel Davies explains why Silicon Valley Bank imploded.