There are lots of problems with the review the Fed has announced of supervision and regulation in the wake of the Silicon Valley Bank collapse.
Silicon Valley Bank
Posted inEconomic Policy
Why We Need a Public Interest Council
An independent body that could investigate systemic risk in the banking system would break the insular cycle of banking regulators and the firms they regulate.
Posted inEconomic Policy
The Problem Lender of Second-to-Last Resort
The Federal Home Loan Bank system has moved beyond its original intent and mostly allows distressed banks to delay a reckoning. It could use reform.
Posted inEconomic Policy
Stopping Bank Runs and Protecting the Economy
The key is higher equity requirements so banks remain solvent.
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
Rich Bank Dumb Bank
Was Signature, the other bank in the Great Panic of 2023, a failure or a patsy?
Posted inPodcasts
The SVB Collapse
Skanda Amarnath explains why Silicon Valley’s favorite bank imploded.
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
The Fed’s Silicon Valley Bank Cover-Up Won’t Work
Supervisors are trying to claim that they warned the bank about its riskiness. But the central bank willingly weakened its supervisory operation.
