Read on Twitter
1) Attempts by the Fed to argue it was a roll-back of the Dodd Frank that caused, or led to, the failure of #SiliconValleyBank are 100% untrue…
2) the bill didn’t prohibit or in any way prevent the Fed from applying enhanced prudential supervision standards. It permitted the Fed to do such enhanced prudential supervision on any BHC, or category of BHCs, if it was concerned that such BHC(s) could pose a risk to financial… twitter.com/i/web/status/1…
3) Second, and more important, the root of the failure to supervise interest rate risk at the banks was 100% tied to the Fed’s 2013 final rule that allowed non-GSIBs to elect to exclude most items from regulatory capital…
4) This can clearly be seen in “
THE FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS HOLDS A MEETING ON A REGULATORY CAPITAL FRAMEWORK FOR BANKING ORGANIZATIONS FINAL RULE”
THE FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS HOLDS A MEETING ON A REGULATORY CAPITAL FRAMEWORK FOR BANKING ORGANIZATIONS FINAL RULE”
5) the precise statement in the rule is: “ the final rule would allow non-advanced approaches banking organizations to make a onetime election to opt out of the requirement to include most elements of a AOCI in regulatory capital. While these banks would not be required to… twitter.com/i/web/status/1…
6) Those are the facts. I am not partisan in calling BS in the financial sector. I believe good public policy, and it’s necessary adjustment, require truth and facts at their core not politics. It is thus I am writing.
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