Its demise is the immediate product of horrendous risk management by the bank’s officers—but there are also important public policy failures here, particularly the Fed’s high-interest rate policy and a reckless, bipartisan bank deregulation law signed by President Donald Trump in 2018.
Senator Mark Warner (D-Va.) wrote a down-home op-ed in the Tidewater News claiming the bill would abolish “excessive regulations” that were “making it too expensive, too time consuming for small banks and credit unions to serve consumers, farmers, and small businesses.” His colleague Senator Tim Kaine (D-Va.) called the bill a victory for “rural and underserved communities,” while senators Heidi Heitkamp (D-N.D.), Jon Tester (D-Mont.) and Joe Donnelly (D-Ind.) declared that the bill would “provide mortgage and other credit to hardworking Americans, helping them and their families grow and start businesses.” Trump agreed: “We are unleashing the economic potential of our people.”
We have idiots leading us.....NO farsightedness,NO DEEP thinking
Last edit: 19 Mar 2023 14:54 by homeagain. Reason: add
The Left wants to blame Trump, but when the biggest failure is a Swiss bank that follows stricter Euro regulations, I think it is more market issues.
Interest rates were held artificially low by Central banks. Savers were robbed, and mortgage holders got Sweetheart mortgages at 3% for 30 years. Now they have to offer 5% to CD holders. It doesn't take an econ major to figure out that is bad business.
Really worried many small regional banks will fail.
Thomas Sowell: There are no solutions, just trade-offs.
