News
Lummis Takes Regulators to Task Over Bank Failures
During a Senate Banking Committee hearing exploring the reasons behind recent bank failures, U.S. Senator Cynthia Lummis (R-WY) pressed Federal Reserve Board Vice Chair for Supervision Michael Barr about federal regulators’ failure to address glaring warning signs at Silicon Valley Bank prior to its collapse. Senator Lummis additionally pushed Federal Deposit Insurance Corporation (FDIC) Chairman of the Board Marty Gruenberg to exempt community banks in Wyoming from any new fees levied to cover the depositors at these failed banks.
Lummis said that the blame for the meltdown falls squarely at the feet of the regulators who were asleep at the wheel. Senator Lummis also noted the importance of ensuring Wyoming community banks are not forced to foot the bill and comply with overly burdensome new regulations as a result of these failures.
Dennis Fox
March 28, 2023 at 9:56 pm
The rules are very clear. Deposits up to $250K are insured by the FDIC. Above that, you must rely on choosing a sound bank. SVB was badly mismanaged and regulators allowed gross negligence to take place. When Yellen said the gov’t would cover ALL deposits, she effectively nationalized our banking system and created a moral hazard for even more bad banking practices. Our sound banks and American taxpayers will pay for Yellen’s mistakes. And the whole system is in jeopardy.
Ray Olson
March 29, 2023 at 8:16 am
She sold the bank- it didn’t cost the taxpayers a nickle- please do your homework.
Ray Olson
March 28, 2023 at 11:04 pm
Which party rolled back the Dowd Frank’s regulations bank security regulations?
Debbie Davis
March 29, 2023 at 10:17 am
I heard that overly high interest rates had a play in the failure also.
Dennis Fox
March 29, 2023 at 12:02 pm
Where does gov’t “get” money? From us taxpayers. So when the gov’t steps in to “cover” all deposits, even the uninsured ones, it is taking money from us. The American people are on the hook anytime gov’t pays for something it shouldn’t. In this case, covering uninsured losses of a badly managed, failed bank. And it further creates the moral hazard of more bank failures, because other banks know that even if they mismanage their deposits, the gov’t will always cover their losses. Just like the 2008 bail-out, the big bank-sters have privatized their profits, but socialized their losses.
Harriet Oleson
March 29, 2023 at 5:19 pm
Please do your homework Dennis, instead of spreading your speculations.. The money Dennis came from a sort of insurance fund paid all banks. BANKS, Dennis not taxpayers. I for one am very glad you were not elected county commissioner. They cannot operate on speculation, imagination and untruths. DO YOUR HOMEWORK!!!!!
Ray Olson
March 30, 2023 at 8:11 am
What part of they sold the bank’s assets don’t you get? Citizen’s Bank bought the whole thing. Just like the Fed actually turned a profit for the tax payer when Obama was cleaning up Bush’s mess.
mark steingass
March 30, 2023 at 8:07 am
…reportedly the SVB CEO (Greg Becker) sold 3.6 million dollars in holdings just days before SVB disclosed huge losses that caused the banks stock value to slide leading to the collapse of SVB…additionally CEO Beck sold over 30 million dollars of his SVB holdings over the past two years…no doubt banking regulations and oversight need to be reconsidered with more protective measures implemented…direct result of the poor banking protection and regulating strategy of the Trump administration, the FDIC, Federal Reserve the OCC…Biden administration…plenty of blame to go around
mike dunncan
March 30, 2023 at 8:52 am
yet Biden and his sheep say the economy is strong…….Bank failure with 78% of American saying the USA is heading in the wrong direction spells disaster and our esteemed leader seems more concerned with chocolate chip ice cream than anything else
Dennis Fox
March 30, 2023 at 1:00 pm
Anytime the “gov’t” pays for something, American citizens are the ones actually footing the bill. It makes no difference if the money comes from the pot labeled FDIC or Treasury. Because the American people are the ones funding ALL government. Gov’t produces zero money. It raises funds by taxing, borrowing or printing. We are all paying to shore up this funny-money (ie fiat) banking system and we will all “pay” in the end, when it collapses.
Harriet Oleson
March 30, 2023 at 2:29 pm
Dennis what part of the government DID NOT PAY FOR SVB- DO YOU NOT WANT TO UNDERSTAND. Is it because your assumptions were WRONG AGAIN!! Do your homework Dennis, it might surprise you how many people respect the truth not assumptions
Dennis Fox
March 31, 2023 at 12:59 pm
The gov’t did pay for bailing out SVB, thru a gov’t directed mandate to the FDIC to cover all losses, including those not insured. That was in violation of the stated FDIC rules that only insures deposits up to $250K. Therefore, the gov’t and US taxpayers paid for the bail out of a mis-managed, badly regulated, private bank. And what’s with the repetitive obsession with homework? That and the “all caps” comes off as rude, on a platform where we can all, calmly discuss issues. Please stick to the issues and refrain from yelling at or questioning the “preparedness” of fellow citizens. It’s called being polite.
Harriet Oleson
April 4, 2023 at 8:55 am
In my book you loose your “right to polite” when you spread half truths.. “Do your Homework” is insisting you find what the FACTS are Before you post. Based on your sudden new activity, you must be running for office again.
Dennis Fox
April 4, 2023 at 12:16 pm
Every post on here is someone’s opinion. We all have that right. And what’s with the obsession with my future? One’s own life must be pretty devoid of meaning. For the non busy-body, looking to impose their own will on others, tending one’s own garden is more fulfilling.