Banking Reports Highlight Alarming Reality. The Clock Is Ticking.

- September 20, 2024
0 views 5 min

used a congressional hearing about the Biden-Harris administration's failures (including initiatives designed to increase broadband access) to deride President Trump as an under-qualified white man while lauding Vice President Harris as a qualified black woman.

The Daily Caller reports:

The House Oversight and Accountability Committee held a hearing Thursday among lawmakers in order to address the “consequences of the Biden-Harris administration's policy failures.” During the hearing, Crockett called out Federal Communications Commissioner Brendan Carr's testimony addressing diversity, equity and inclusion (DEI) broadband.

Two reports on the failures of and cast a harsh light on the banks' practices and on regulators' laxness.

The Federal Reserve Report, which focused on Silicon Valley Bank, identified four key issues:

1.Silicon Valley Bank's board of directors and management failed to manage their risks.

2. [] Supervisors did not fully appreciate the extent of the vulnerabilities as Silicon Valley Bank grew in size and complexity.

3. When supervisors did identify vulnerabilities, they did not take sufficient steps to ensure that Silicon Valley Bank fixed those problems quickly enough.

4. 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.

In other words, the bank was reckless and the Fed got lazy. The upshot: the second largest in U.S. history.

But there's a wrinkle to the Silicon Valley Bank story that extends beyond bankers and their regulators:

…the combination of social media, a highly networked and concentrated depositor base, and technology may have fundamentally changed the speed of bank runs. Social media enabled depositors to instantly spread concerns about a bank run, and technology enabled immediate withdrawals of funding.

It's another way of saying this was history's first Twitter-based bank run. Could it happen again? Possibly. And the Fed acknowledges it needs to broaden its awareness of things that can go wrong, and be prepared to act swiftly to address them.

The other report, from the Government Accountability Office, came to similar conclusions about Silicon Valley and Signature Bank:

Risky business strategies along with weak liquidity and risk management contributed to the recent failures of Silicon Valley Bank and Signature Bank. In both banks, rapid growth was an indicator of risk. In 2019–2021, the total assets of Silicon Valley Bank and Signature Bank grew by 198 percent and 134 percent respectively—far exceeding growth for a group of 19 peer banks (33 percent growth in median total assets). To support their rapid growth, the two banks relied on uninsured deposits, which can be an unstable source of funding because customers with uninsured deposits may be more likely to withdraw their funds during times of stress. Additionally, Silicon Valley Bank was affected by rising interest rates and Signature Bank had exposure to the digital assets industry. The banks failed to adequately manage the risks from their deposits.

It also noted the Federal Reserve's and 's failures:

The Federal Reserve Bank of San Francisco rated Silicon Valley Bank as satisfactory up until the bank received its first large bank rating in 2022. The Reserve Bank downgraded Silicon Valley Bank in June 2022 and began working on an enforcement action in August 2022. However, it did not finalize the action before the bank failed.

The Federal Deposit Insurance Corporation (FDIC) took multiple actions to address supervisory concerns related to Signature Bank's liquidity and management, but did not substantially downgrade the bank until the day before it failed.

After-action reports like these are useful in exposing failings, weakness, and so on in the existing system.

But without reform, the system will fail again – perhaps with greater consequences for the larger financial system.

The point is not to let these reports sit on shelves and be forgotten but to ensure that reforms are enacted before the next crisis erupts. And the clock is ticking: the FDIC seized and sold the once high-flying over the weekend. Another casualty of the March Banking Madness…or a harbinger of more hardship to come?

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

READ NEXT: Fox Sends Cease-And-Desist Letter Over Leaked Tucker Carlson Footage

3 Comments
    Paul

    Didja’ ever notice, whenever Democrats are in charge, the whole country AND the rest of the world go straight to heII?

    tom chase

    There are heavy reports that local individuals and foreign short sold bank stocks prior to a collapse. This undercut financial stability. There are countries that want America to fail, Saudi Arabia, Iran, China etc. You collapse a country by ruining it’s banking structure as George Soros did to England. I expect he hasd a hand in these bank failures as well. There will be more to come and the Fed Reserve is pure crap. This Fed government is clueless.

    Jawad

    The DemoCreeps believe that money grows on trees and is free for the harvesting, an UN-Scriptural attitude. Nancy was a great spokeswoman for their mindset and their cause, routinely saying things like: (1) ‘We’ll have to pass it so that you can find out what’s in it,’ and (2) ‘We ALL belong to the Government.’

Leave a Reply

Security

0 views
American Liberty News

Chinese Spies Lurked In American Engineering Firm’s Servers For Months Undetected

Chinese hackers exploited vulnerabilities in an American company's systems stemming from outdated
- September 20, 2024
0 views
American Liberty News

Israel And Hezbollah Exchange Fire Over Lebanese Border Following Deadly Explosions

Tensions are escalating along the Israeli-Lebanese border as Israel and Hezbollah exchanged
- September 19, 2024
0 views
American Liberty News

Exploding Wireless Devices, Prelude To Wider Israel-Hezbollah War?

PAUL’S DAILY BRIEF (PDB) Thursday – Israel’s Hezbollah device attacks: Is this a
- September 19, 2024
0 views
American Liberty News

Risk Of War With China Growing Daily, Say US Defense Leaders

PAUL’S DAILY BRIEF (PDB) Wednesday – Air Force secretary underlines growing Chinese power,
- September 18, 2024

Foreign Affairs

0 views
American Liberty News

Tlaib Condemns Targeted Attacks On Hezbollah, Stays Silent On Israeli Civilian Casualties

Congresswoman Rashida Tlaib (D-Mich.) has once again drawn attention with her fondness
- September 20, 2024
0 views
American Liberty News

Venezuelan Media Turns To AI To Shield Journalists From Persecution

Following a highly contested and suspicious presidential election, reporters, journalists and newscasters
- September 19, 2024
0 views
American Liberty News

Israel And Hezbollah Exchange Fire Over Lebanese Border Following Deadly Explosions

Tensions are escalating along the Israeli-Lebanese border as Israel and Hezbollah exchanged
- September 19, 2024
0 views
American Liberty News

Hezbollah Walkie-Talkies Exploding In Lebanon, Including At Funeral For Terrorists

In a continuation of yesterday's deadly incident, walkie-talkies used by Hezbollah have
- September 18, 2024

Business & economics

0 views
American Liberty News

Federal Reserve Cuts Interest Rates By 50 Basis Points

For the first time in over four years... The Federal Reserve has cut
- September 18, 2024
0 views
American Liberty News

Trump Pledges To Eliminate Taxes On Overtime Work If Reelected

Donald Trump announced that, if reelected president, he would eliminate taxes on overtime
- September 15, 2024
0 views
American Liberty News

Truth Social Stock Plummets, Then Rebounds After Trump-Kamala Debate

A sudden nosedive followed by... Shares of Trump Media & Technology Group (DJT),
- September 14, 2024
0 views
American Liberty News

Millionaires Expected To Flee Britain In Droves Ahead Of Labour Party Tax Raids

Following the left wing Labour Party's victory in the United Kingdom, experts are
- September 9, 2024

heath & science

0 views
American Liberty News

Trump Rallygoers In Arizona Report Mysterious Eye Injuries After Event

Excruciating pain... Several attendees of former President Donald Trump’s rally in Tucson, Arizona,
- September 19, 2024
0 views
American Liberty News

Why Isn’t The Media Celebrating This Remarkable American Triumph?

The Overlooked Triumphs of SpaceX and Dragon In an age where headlines are
- September 16, 2024
0 views
American Liberty News

New York Governor Reveals Cancer Diagnosis

New York Governor Kathy Hochul (D) revealed she has skin cancer. Gov. Hochul announced
- September 12, 2024
0 views
American Liberty News

Congressman Joe Wilson Hospitalized After Medical Emergency At Washington, DC Event

Republican Congressman Joe Wilson of South Carolina was hospitalized on Tuesday after experiencing
- September 11, 2024

American Liberty Arms

As DA, Kamala Harris Claimed The Right To Enter And Inspect Gun Owners’ Homes

By Cam Edwards Bearing Arms Kamala Harris claims that while her specific policy preferences may have

Jewish Groups Issue Travel Warning About Massachusetts County Where Man Charged In Self-Defense Shooting

By Cam Edwards Bearing Arms Three Jewish organizations have issued a travel warning and are calling

Colorado Democrat Blames Republican Minority For State’s ‘Out-Of-Control Gun Violence’

By Cam Edwards Bearing Arms Democrats have complete control of the state government in Colorado. The

Recent 2024 NRA Board Meeting Leaves The Organization’s Future Uncertain – Video

by Stephen Gutowski AmmoLand The recent 2024 NRA Board meeting held in Texas turned out to

At American Liberty News, we eschew the mainstream media’s tightly controlled narrative to provide our readers with real news, real insights, and the means to take action. We seek out insightful coverage – and partner with knowledgeable and experienced people and organizations to bring you the information and insight our readers demand.

 

We humbly seek to provide the tools and information necessary for our readers to decide for themselves what is true and what is right.

American Liberty News ©2022

Evolution Digital Media  |   1900 Reston Metro Plz  |  Suite 600  |  Reston, VA 20190