GOOD NEWS: Authorities looking into possible executive malfeasance in #SiliconValleyBankCrisis
The executives lost their jobs, shareholders were zeroed out --> There was no bailout a la 2008
But we still need systemic change 🧵 1/6
nytimes.com/2023/03/14/bus…
The executives lost their jobs, shareholders were zeroed out --> There was no bailout a la 2008
But we still need systemic change 🧵 1/6
nytimes.com/2023/03/14/bus…
Thanks to the #BankLobbyistAct back in 2019, and the Trump-era Fed's further deregulation, the Fed took its eyes off large banks like SVB. AFR fought against that tooth and nail. 2/6
The government moved decisively to avoid a panic by guaranteeing deposits. Banks that benefit from that now need tougher supervision. AFR's Renita Marcellin told the NYT ... 3/6
“At the end of the day... We have this implicit guarantee for everyone, but not the rules and regulations that should be paired with these guarantees.” 4/6 nytimes.com/2023/03/13/bus…
What to do? Start by repealing the #BankLobbyistAct, aka #S2155. @RepKatiePorter is already on it. 5/6
https://mobile.twitter.com/RepKatiePorter/status/1634626484810702848
But there's more to do! When #WallStreet shows it can't be responsible (yet again) we need a broad response so that we're not playing catchup. Here are a few ideas from AFR: 6/end ourfinancialsecurity.org/2023/03/news-r…
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