The regulators knew that Silicon Valley Bank was losing deposits and that their securities portfolios were losing money.
We know this because they have already said so.
We know this because every bank is losing deposits and their securities portfolios are losing money, and have been since the fall of 2021.
The regulators knew there was a problem, did nothing, and now want even more regulation, want us to yield to them more power and grant them more authority, so they can mismanage on an even grander scale.
The regulators need to understand this: They are the problem.
Regulators relieve bank managers from having to make tough decisions. Regulators take the place of prudential critical strategic thinking.
We don’t need more regulation. We need to end the regulators.
The Fed "failed to take enough forceful action" with Silicon Valley Bank, Barr said in a letter released by the Fed, and the bank's failure "demonstrates that there are weaknesses in regulation and supervision that must be addressed," suggesting that rules implemented in 2019 that lessened regulations on banks with $100 billion or more in assets will be revisited.
The FDIC in its report about Signature Bank said the "root cause" of the New York lender's failure was "poor management" but that the FDIC "could have escalated supervisory actions sooner" and been more "forceful."
