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Is there an argument that the government failed in oversight with SVB? I think this is a textbook slam-dunk by the government? They stepped in when the situati

by klausa 3y ago

Is there an argument that the government failed in oversight with SVB? I think this is a textbook slam-dunk by the government? They stepped in when the situation was _bad_, but not _catastrophic_ yet (mmmmaybe arguable), took over, and no depositors got hurt. Is there an argument that this could've gone better, apart from "no banks ever fail"?

landemva 3y ago
Fed had to set up a swap/lend facility that weekend. Sort of like they make it up as they go. The specific regulator is going to retire. "Abbasi and Mary Daly, president of the San Francisco Fed, came under scrutiny after a post-mortem report undertaken by the Federal Reserve found problems with how SVB was supervised." https://www.msn.com/en-us/money/markets/key-san-francisco-fed-official-who-oversaw-supervision-of-svb-will-retire/ar-AA1fWSEW https://www.msn.com/en-us/money/markets/key-san-francisco-fe... And through regulatory capture the CEO of SVB was on the board of directors of the regulator! https://www.reuters.com/markets/us/ceo-failed-silicon-valley-bank-no-longer-director-sf-fed-2023-03-10/ https://www.reuters.com/markets/us/ceo-failed-silicon-valley...