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Little appreciated facts that IMHO were the fundamental drivers a) CEO of SVB was on the Board of Govs of SF Fed Reserve, the entity that is supposed to superv
by nborwankar 3y ago
Little appreciated facts that IMHO were the fundamental drivers
a) CEO of SVB was on the Board of Govs of SF Fed Reserve, the entity that is supposed to supervise and regulate banks
b) He had earlier lobbied Congress to relax stress test requirements so the SVB would be in the exempt group.
So when you have a bank regulator (SF Fed board member) lobbying Congress to deregulate his own bank (so much to unpack here) does the rest really matter? It would only be a matter of time before the proverbial shtuff hit the fan.
- iudqnolq 3y agoWhile technically true your first statement is very misleading. The SF Fed has a nine-member board. Three members are appointed by the Board of Governors of the Federal Reserve System, who in turn are appointed by the president and confirmed by Congress. The remaining six members are elected by banks. You can certainly make the case that banks should have less influence over the fed. But this isn't at all unique to SVB. See https://www.frbsf.org/our-district/governance/boards-directors/san-francisco-board-directors/ https://www.frbsf.org/our-district/governance/boards-directo...