Opinion by Charles Lane: In the Silicon Valley Bank debacle, greed and fear ruled, not the rules
However, an analysis by the Bank Policy Institute — a pro-deregulation, industry-backed think tank, to be sure — suggests that, as of Dec. 31, SVB met the liquidity standard with room to spare, and then failed anyway.
Kindleberger and company would have been surprised neither by efforts to tighten regulations in the wake of the 2008 crisis, nor by banks’ subsequent attempts to wriggle out of them — nor by the failure of regulations to control unanticipated risks. A recurring paradox, the book notes, is that “the universal response” to regulatory failure is to call for more, or more effective, regulation.Yet other methods of tempering greed, fear and groupthink do not necessarily work better.
The government did not quite let that happen in the SVB case, however, for the same reason it has rarely let it happen in the past: the potential for a general meltdown, such as the one that Lehman Brothers’ collapse arguably triggered in 2008.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
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?
Weiterlesen »
Opinion | The right’s crazy explanation for Silicon Valley Bank’s fall.jamescdownie: Conservatives are using one word to explain everything from a train derailment to a bank failure to the police wrongly beating a motorist. 'Say ‘woke’ in case of emergency' has truly become a favorite strategy.
Weiterlesen »
Opinion | Why the Silicon Valley Bank rescue hasn’t calmed other banks’ customersExecutives at some of the other banks watching their stocks plummet didn’t necessarily do anything wrong. But in this current paranoid landscape, that’s not enough.
Weiterlesen »