Warning Signs At SVB May Have Been Missed Because Of Trump Era Stress Test Relaxations (forbes.com)

It was the 16th largest US bank. (LS)

Silicon Valley Bank collapse: CEO cashed out millions while employees got bonuses (msn.com)

Perhaps they should have bought derivatives for interest rate insurance, or had more capital, or deferred bonuses and stock sales due to the rising interest rate environment? Certainly, relaxed Federal requirements do not obligate a company to increase their risk profile. (LS)

Since the citizens are paying back those who had deposits above FDIC insurance maximum, it seems more than fair that a clawback of bonuses, stock sales, and salary above median wage be used as a punitive measure well to lower the pain. The CEO was paid just under $10 million in the last year for his services. One way to increase profits is to increase risk, and success was found in this approach. The CFO used to work for the now defunct Lehman Brothers.   If the Biden administration acts like the Obama administration, costs will be socialized as another homage to the rich and thus further incentivize private risk taking at the public’s expense. My guess that the House bill to increase stress test requirements, much as it is needed, is DOA, as Republicans are very fond of lowering regulatory oversight and burden, even when it comes at public cost. (LS)

After the weakening the Dodd-Frank law,at the behest of bankers, including the SVB, perhaps Biden was amiss in re nominating Fedeal Reserve Board President Jerome Powell.  He was already, with much deregulatory zest, implementing the 2018 rollback of regulations, and perhaps going even beyond the new rules, and increasing deregulation. Trump had made him the Board President. Note also that the collapse of The Signature Bank yesterday was the 3rd largest bank failure in US history. (LS)

US Banks Have Over $1 Trillion of Uninsured Deposits. Signature Ranks High. (businessinsider.com)