Once upon a time, a few months back #blueanon got supper super enraged and embarrassed because one of their most favored banks, an operation that by all accounts was a complete clown, but they said and did all the right things to appeal to #blueanon virtue signaling.
So #blueanon political and thought leaders tried to propagate yet another insane conspiracy theory that any run on banks and even the SVB collapse itself was being fueled by the Russians and Chinese (and not the other major #blueanon virtue signaling financial institutions which stood to profit mightily from the collapse/run on smaller banks).
Now the reality hits . . .
The Federal Reserve’s banking supervisors failed to take forceful action to address growing problems at Silicon Valley Bank before it collapsed last month, the central bank’s top regulator said, signaling a broad push to toughen rules on the industry.
Michael Barr, the Fed’s vice chair for supervision, said supervisors didn’t fully appreciate the extent of the vulnerabilities as SVB grew in size and complexity. When supervisors did find risks, they didn’t take sufficient steps to ensure the firm fixed those problems quickly enough, he said in a report Friday.
Regulators took control of Santa Clara, Calif.-based SVB on March 10. The collapse sparked a panic that led to the failure of New York-based Signature Bank and an intervention by financial regulators to protect uninsured depositors at both banks. (Wall Street Journal)
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