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…

1) When the Gov't expanded the Fed’s balance sheet from $4t to $9T banks were forced to invest that newly printed money. The banking problems are tied to the fragilities of a fractional reserve system, in which deposits are leveraged by lending long... @SquawkCNBC @JoeSquawk 2) Taking long dated securities at par - rather than at current values - without requiring banks to raise new equity, increase deposits, shrink their portfolios or suspend dividends or buybacks only pushes the problem into the future...

1) The fact is that @FDICgov #deposit #insurance is outdated. Don’t consider only the $250k or amount but underlying activities when assessing deposit insurance. It was designed for a Glass-Steagall world. Today, the #DIF should be priced relative to underlying business risk. 2) An old fashioned community bank that merely takes deposits and makes loans within its customer geography should be assessed at a different level than a bank that is also an asset manager, insurer, and investment bank.

1) Anyone stupid enough to think the @federalreserve has “solved” the banking problem should focus their binoculars. The approach reminds me of the failed MLEC which I described as “May Losses Extend Continuously”. @PatrickMcHenry @FinancialCmte @FSCDems #SIVB #SBNY… twitter.com/i/web/status/1… 2) A proper program would have taken the underwater long dated HTM at a MTM. Then @federalreserve should have required banks to cut dividends & buybacks & raise capital within that year. The @USTreasury should have taken Sr. Pref retire-able upon full capitalization of the… twitter.com/i/web/status/1…