On Monday, Senator Elizabeth Warren (D-MA) asserted on MSNBC’s “The Rachel Maddow Show” that former President Donald Trump’s “bank regulation reliefs” needed to be reversed in order to prevent more banks from collapsing like Silicon Valley Bank (SVB) last week.
The problem for Warren is, just like how the Democrats tried to blame Trump’s deregulations on the East Palestine, Ohio train derailment, the failure of SVB had nothing to do with it either.
“The way to understand this crisis is that it has three players,” Warren remarked. “The first is Congress and President Trump, who says, let’s weaken the regulation, which hit really hard. The second part is the regulators themselves and, in particular, the Fed and Jerome Powell, the chairman of the Federal Reserve Bank, who took that change in the laws and he ran with it. In fact, he ran further than a lot of people even though the law let him. In tailoring the oversight of those banks in order to make it as weak as possible.”
“Part three, which is those executives, those bank CEOs who lobbied hard to get this change in law,” she continued. “Those are the ones who, when the window opened, they were ready to go. They went out, and they decided to load up on risk. Why? They loaded up on risk because it made their banks more profitable, and it meant it made them have higher salaries. They got to rule over bigger banks. They got big bonuses. They brought in their friends and did all that by taking on more risk. It worked. SVB increased its profitability of the last three years by 40%. They took on all of the risks and make themselves more profitable right up to the day that the bank exploded. That is the story.”
Warren is completely off the mark here. These Democrats have no soul. SVG went 9 months without a risk manager from April 2022 through January 2023. And then they hired Jay Ersapah as head of risk assessment, who spent more of her time pushing woke policies onto the bank than doing her job. SVG brought in a lot of money from the tech sector, and at the same time, they didn’t pay attention to their debt load. They went and bought up a bunch of government bonds. The Biden administration then went and raised rates making SVB’s bonds worthless because people could get a bond at a higher rate at that point. So, the Biden government screwed bondholders by raising rates in an attempt to fix the inflation problems they caused by overspending.
“Congress needs to act,” Warren added. “Congress needs to roll back the Trump bank regulation reliefs. We need to make a change because it will affect the regulators, and the regulators will make sure that they are engaging in closer supervision.”
VISIT OUR YOUTUBE CHANNELI guess the Democrats are going to blame all of their mishaps on Trump’s deregulations. One of the things that all Americans need to worry about is jackasses like Warren using the SVB and now Signature Bank collapses to push for digital currency which would be the death knell of any privacy and freedoms we have left.
If Warren’s IQ were any lower, we would have to put her in a planter and water her twice a week.
