3 ms·

10 Bad situation happens. 20 Regulation is setup to mitigate/eliminate the bad situation. 30 Regulation to prevent the bad situation is removed. 40 GOTO 10

10 Bad situation happens. 20 Regulation is setup to mitigate/eliminate the bad situation. 30 Regulation to prevent the bad situation is removed. 40 GOTO 10 Seriously, all of this was predictable. See Glass-Steagall Act loosening in 1999, followed by the GFC of 2008. See removal of stress tests for all banks except six, in 2018, followed by 2023 bank collapses.

brvsft 3y ago
Stress tests never modeled for interest rates rising, but keep banging the regulations drum. See https://www.federalreserve.gov/supervisionreg/dfa-stress-tests-2022.htm https://www.federalreserve.gov/supervisionreg/dfa-stress-tes...
- jonathankoren 3y ago
  Funny that you cite the Federal Reserve, because they literally say the exact opposite of what you're saying. "The Board’s tailoring approach in response to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) and a shift in the stance of supervisory policy impeded effective supervision by reducing standards, increasing complexity, and promoting a less assertive supervisory approach." https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htm https://www.federalreserve.gov/newsevents/pressreleases/bcre... https://www.reuters.com/business/finance/us-fed-points-finger-trump-era-rollback-svb-demise-2023-04-29/ https://www.reuters.com/business/finance/us-fed-points-finge...
  - brvsft 3y ago
    I cited the stress tests that you were referring to. Do you have anything to say about the fact that the stress tests did not model reality? Did you read tables 2.A and 3.A in the stress tests document? If you're so eager to bring up the stress tests, why do you shirk any attempt to understand what the stress tests modeled? Also, I do not care who the Fed points the finger at, especially considering their stress tests failed to predict the future in which interest rates rose as dramatically as they have over the last year and a half. Incidentally, interest rates are one of the only things the Fed has control over, so you might take some time to ponder the total absuridity that their stress tests failed to model for something they ended up doing in the real world.
    - jonathankoren 3y ago
      Why bother? You admitted have your conclusion and violently react to anything that contradicts your faith based reality. (“ I do not care who the Fed points the finger at”)
      - brvsft 3y ago
        The absurdity of referring to the stress tests and then refusing to understand what's in them is on you. You call it a "violent" reaction and talk about my "faith based" reality. Yet I'm the one who just read the stress tests and linked them here. I'm living in I-read-the-actual-stress-tests reality. You're not. So whose reality is faith based? And if there was anything violent about my reaction, it's to your arrogant, "Funny that you..." comment. Watch your tone. Anyone with critical thinking skills who reads this exchange: seriously, go read the stress tests, look at the interest rates, and compare them to what interest rates currently are. The only reasonable conclusion is that the stress tests would not have prepared these banks in any meaningful way for what ended up happening. Of course, none of this even means that regulations are bad, or that Trump-era rollback of regulations was good. It just means the existing regulations were inadequate anyway. And acting like the stress tests would have prevented anything is a disingenuous or ignorant position. In your case, it's ignorance.
jtbayly 3y ago
From the article: >One of the 10 most vulnerable banks is a globally systemic entity with assets of over $1 trillion. Three others are large banks. “It is not just a problem for banks under $250bn that didn’t have to pass stress tests,” he said.

brvsft 3y ago

Stress tests never modeled for interest rates rising, but keep banging the regulations drum. See https://www.federalreserve.gov/supervisionreg/dfa-stress-tests-2022.htm https://www.federalreserve.gov/supervisionreg/dfa-stress-tes...

jonathankoren 3y ago
Funny that you cite the Federal Reserve, because they literally say the exact opposite of what you're saying. "The Board’s tailoring approach in response to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) and a shift in the stance of supervisory policy impeded effective supervision by reducing standards, increasing complexity, and promoting a less assertive supervisory approach." https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htm https://www.federalreserve.gov/newsevents/pressreleases/bcre... https://www.reuters.com/business/finance/us-fed-points-finger-trump-era-rollback-svb-demise-2023-04-29/ https://www.reuters.com/business/finance/us-fed-points-finge...
- brvsft 3y ago
  I cited the stress tests that you were referring to. Do you have anything to say about the fact that the stress tests did not model reality? Did you read tables 2.A and 3.A in the stress tests document? If you're so eager to bring up the stress tests, why do you shirk any attempt to understand what the stress tests modeled? Also, I do not care who the Fed points the finger at, especially considering their stress tests failed to predict the future in which interest rates rose as dramatically as they have over the last year and a half. Incidentally, interest rates are one of the only things the Fed has control over, so you might take some time to ponder the total absuridity that their stress tests failed to model for something they ended up doing in the real world.
  - jonathankoren 3y ago
    Why bother? You admitted have your conclusion and violently react to anything that contradicts your faith based reality. (“ I do not care who the Fed points the finger at”)
    - brvsft 3y ago
      The absurdity of referring to the stress tests and then refusing to understand what's in them is on you. You call it a "violent" reaction and talk about my "faith based" reality. Yet I'm the one who just read the stress tests and linked them here. I'm living in I-read-the-actual-stress-tests reality. You're not. So whose reality is faith based? And if there was anything violent about my reaction, it's to your arrogant, "Funny that you..." comment. Watch your tone. Anyone with critical thinking skills who reads this exchange: seriously, go read the stress tests, look at the interest rates, and compare them to what interest rates currently are. The only reasonable conclusion is that the stress tests would not have prepared these banks in any meaningful way for what ended up happening. Of course, none of this even means that regulations are bad, or that Trump-era rollback of regulations was good. It just means the existing regulations were inadequate anyway. And acting like the stress tests would have prevented anything is a disingenuous or ignorant position. In your case, it's ignorance.

jtbayly 3y ago

From the article: >One of the 10 most vulnerable banks is a globally systemic entity with assets of over $1 trillion. Three others are large banks. “It is not just a problem for banks under $250bn that didn’t have to pass stress tests,” he said.