Silicon Valley Bank managers should have hedged risk. Biden’s regulators should have seen the risk rising and corrected it. Biden’s admin should have helped set up a merger instead of dragging feet. Now Middle America is on the hook for a bailout that didn’t have to happen.
@SenJohnKennedy In 2018, Trump rolled back post-financial crisis banking rules washingtonpost.com/business/econo…
@SenJohnKennedy Just btw, even noobs like me did these things bc the imminent interest rate rise was so obvious … That’s my biggest gripe. I was more responsible with my own money than they were with $200bn of others’ money…
@SenJohnKennedy Check the books!!! Another liberal business that supported liberal politicians!
@SenJohnKennedy Appreciate your plain talk and clarity Senator. Keep it up. Th entire system is broken, failures at all levels.
@SenJohnKennedy Gavin Newsome is heavily tangled up in this from all sources
I posted this 2 days ago, it explains why SVB made a bad choice, as most banks do, that prevented them from hedging. "Learned something today that might make SVB problems endemic throughout banking. I wondered why SVB never hedged its huge bet on long term bonds which would have solved their problem. Banks can book their holdings as either Held to Maturity(HTM) or Available for Sale (AFS). Banks love holding bonds HTM but they are not allowed to be hedged. SVB held the majority dollars of their bonds as HTM. So why did they do it? AFS bonds are always carried at fair value, gains and losses have to be reported, nothing hidden. I bet you can guess , HTM bonds are always reported at cost, which allows all losses being hidden from the public. I have a funny feeling SVB is not alone."
@SenJohnKennedy Middle America is BEING RIPPED by hedge funds as well. When are you going to be mentioning this?
@SenJohnKennedy Duh. You voted for a law that PREVENTED the government from looking at it, fir a bank that size. And since when are Republicans for Government standing over corporate shoulders???