Trump, Who Bragged About Gutting Dodd-Frank, Claims ‘Wokeness’ Caused SVB Collapse

[RayGravesGhost]

Just remember this when you blindly cheer for cutting regulations when you don't know what regulations are being cut


https://www.yahoo.com/news/trump-bragged-gutting-dodd-frank-005804658.html

Trump, Who Bragged About Gutting Dodd-Frank, Claims ‘Wokeness’ Caused SVB Collapse

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President Donald Trump celebrates with lawmakers after signing the Economic Growth, Regulatory Relief, and Consumer Protection Act at the White House on May 24, 2018.



WASHINGTON ― Former President Donald Trump on Monday blamed “wokeness” for the collapse of Silicon Valley Bank rather than the law he signed in 2018 that gutted the Dodd-Frank federal regulations on smaller banks.

Trump bragged within days of taking office that he would go after the Dodd-Frank Act, which was signed by President Barack Obama in 2010 after the 2008 financial crisis and which forced banks to be more conservative in investing their depositors’ money.


“Dodd-Frank is a disaster. We’re going to be doing a big number on Dodd-Frank,” Trump said on Jan. 30, 2017, as he signed an executive order requiring that agencies eliminate two regulations for each new one they wanted to implement.

Sixteen months later, he signed a bill that freed regional banks like SVB from many Dodd-Frank rules. “They shouldn’t be regulated the same way as the large, complex financial institutions,” he said. “As a candidate, I pledged that we would rescue these community banks from Dodd-Frank, the disaster of Dodd-Frank, and now we are keeping that commitment.”

 

[RayGravesGhost]

https://finance.yahoo.com/news/desantis-gop-waging-war-against-225045204.html

DeSantis and GOP are waging war against 'woke' ESG. Now business groups are fighting back.​

Jessica Guynn, USA TODAY
Thu, March 9, 2023 at 6:08 PM EST·4 min read

Conservative attacks on ESG investing have spread to statehouses across the country.

Now business groups are fighting back.

From North Dakota to Mississippi, state lawmakers have defeated proposals that would bar state governments or pension funds from doing business with financial institutions that follow ESG – environmental, social and governance – principles, making way for weakened versions of legislation.

"We’re starting to see a backlash in the states to measures that would restrict investors from taking into account long-term business risk in their portfolios,” Republican strategist Ron Bonjean told USA TODAY. “There is a clear business and financial case to these measures’ failures: the free market depends on investment decisions that take material risks into account.”

Conservative gospel has long been that the government should not interfere in private business. But for months now, conservative advocacy groups backed by right-wing donors have mounted a campaign in red states to stop “woke” investments that take into account climate risks and social issues.

 

[nail1988]

 

[kalimgoodman]

I just laugh at the GOP and calling everything "Woke". They are really overusing that word.

 

[grandhavendiddy]

Do you know who lobbied for the rule change in 2018? Barney Frank, the author of Dodd-Frank, and the CEO of SVB.

But, this is not what ultimately led to the demise of the bank.

What led to it was a failure of:

1. Duration Matching - common Finance principle of matching the duration of the investment holdings to the underlying assets. Bonds have a duration of 5-7 years; their deposits had 5-7 minutes. The Chief Investment Officer and her/is team failed here.

2. Concentration Risk - these firms put 100% of their assets into a single financial institution. Kevin O'Leary said it absolutely right when he said that his portfolio companies are required to limit that to 20%

3. Affinity and Proximity Bias - these firms and their VC backers, all used the same, single bank. This blinded them to ask tougher questions around things like #2 above. By the way, in our prior exchange, I said that i was actually a fan of implicit bias training. The reasons are multiple and include ones that have nothing to do with race and gender as seen here.

4. Classic political entanglements and conflicts of interest - guess who, per the NYT, earned $2M+/year as an advisor to SVB? Barney Frank. Massive COI.

Could the regulators have caught the investment moves earlier and prevented the mismatch of Duration matching? Perhaps... but that is a lot to ask of them. This all happened within hours and, on the surface, the investment committee put their funds into safe asset classes - just with the wrong aggregate duration.

Is this a failure of "woke" policies? I read somewhere, perhaps inaccurately, that the investment team was all female. If so, that should have had nothing to do with the above, unless they were truly unqualified.

 

[Mdfgator]

Deranged fed policy for a long time that went into hyperdrive March of 2020. Just the tip.

 

[RayGravesGhost]

 

[RayGravesGhost]

16 banks failed in trump's 4 years


https://www.yahoo.com/news/pro-trump-posts-ignore-bank-143413550.html
Pro-Trump posts ignore bank failures under his administration
Natalie Wade, AFP USA
Wed, March 22, 2023 at 10:34 AM EDT·3 min read

After the collapse of Silicon Valley Bank (SVB) in March 2023, critics of President Joe Biden claimed no financial institutions failed during Donald Trump's administration. This is false; regulatory documents show at least 16 banks shuttered while Trump was in the White House.​

"Don’t let the democrats lie to you… Banks were NOT failing under Donald Trump’s watch," says a March 14, 2023 tweet.

Screenshot of a tweet taken March 16, 2023

The claim circulated elsewhere on Twitter amid a flurry of partisan accusations that followed the collapse of SVB on March 10, and New York-based Signature Bank two days later.

"I don't remember banks collapsing under Trump... but don't worry guys it's only a matter of time till Biden/media blames him for that too," Donald Trump Jr said in a March 12 tweet.

 

[RayGravesGhost]

Can anyone point to a single thing the House GOP has actually delivered on yet?


https://www.yahoo.com/news/house-gop-fails-override-biden-222332748.html
House GOP fails to override Biden veto of ESG investing ban

WASHINGTON (AP) — The U.S. House failed Thursday to override President Joe Biden's first veto — of a Republican-led bill that would have banned the consideration of environmental, social or governance issues in retirement and other investment decisions.

Republicans failed to mount the necessary two-thirds votes needed in the House to override the president's veto of the “ESG” investment bill. The override failed on a 219-200 vote mostly along party lines as most Democrats opposed.

The standoff was a first test of the strength of the new Republican majority in the House as it confronts the Democratic president in the White House.

House Republicans had succeeded in passing the legislation through Congress last month, part of their agenda to undo so-called “woke” government policies that strive to bring new ways of thinking about social and environmental issues with equity and accountability.