Still more...

 

Biden seeks to show stability in bid to avert banking chaos

"WASHINGTON (AP) — In 2016, Vice President Joe Biden warned against efforts to unravel banking regulations that Democrats had fought to implement following the nation’s financial crisis, just as the emerging Trump administration was determined to loosen those strict banking rules."

"Biden argued that without the far-reaching 2010 banking overhaul known as Dodd-Frank, financial institutions would continue to gamble with consumers’ cash and ultimately hurt the middle class."

(It's EXACTLY what has happened.)

“We can’t go back to the days when financial companies take massive risks with the knowledge that a taxpayer bailout is around the corner when they fail,” Biden said in a speech at Georgetown University in the waning days of the Obama administration."

(We cant go back because we never really left in the first place. And dont overlook:

"the emerging Trump administration was determined to loosen those strict banking rules"

They most certainly did and here we are.)

"Now there’s a banking crisis on his watch as president, and Biden is moving aggressively to assure the public that it is contained, bank executives will be fired, deposits are safe and taxpayers aren’t on the hook — measures also designed to calm jittery financial markets."

(If everything is so "solid"?

Why are financial markets so "jittery"

?)

'His call for additional regulation, though, is likely to run into stiff resistance in the Republican-controlled House and even among some moderate Democratic lawmakers who joined Republicans to loosen some rules in a 2018 law — not to mention criticism from the still-forming 2024 Republican field that has already labeled his actions a bailout by just another name."

(It is. It really is, they can finagle and use insurance money and put fees on banks, rearrange all the deck chairs they want...A bail out is a bail out and that's exactly what this is.

I cringed the day they rollback part of Dodd-Frank BTW...Knew it meant trouble down the road. You can hate on Elizabeth Warren all you want but she knew at the time it meant trouble in the future as well.)

"But administration officials believe that this time they had to act substantively despite bad decision-making by bank executives, given the economic risks and the potential impact on customers who did nothing wrong.'

(Did we really just teleport back to 2008?)

"On Monday, Biden also stressed that taxpayers will not bear the cost of his administration’s penalties on the two failed banks, instead tapping into an insurance fund that is paid for by bank fees. And while customers and small businesses who stashed their money with the penalized banks would be protected, Biden emphasized that investors would not.

“They knowingly took a risk and when the risk didn’t pay off, investors lose their money,” Biden said. “That’s how capitalism works.”

(Not in this country since 2008 it's not.)

"There, several GOP senators conveyed their concerns to administration officials that Silicon Valley executives were being rescued in a way that could ultimately harm community banks in their home states, according to a person with knowledge of the call who was granted anonymity to discuss a private conversation. That would be because these banks would be assessed new fees to replenish the insurance fund that the administration tapped to aid the two failed banks’ depositors."

"Republicans angling for the 2024 presidential nomination are already arguing that customers will ultimately bear the costs of the government’s actions even if taxpayer funds weren’t directly used. Some economists believe more fees levied on banks will just get passed onto consumers, such as increased rates for loans."

(These economist...Get out of your office at the university and get your hands and feet in the real world some of ya, plz? The other day it was "Unemployment may affect household spending." Todays it's: "SOME economists believe more fees levied on banks will just get passed onto consumers." When doesnt everything just get passed on to the consumer? Come show me that/those instance(s). I got a chair at my table. We have allowed corporations to Pass along  all the increased cost to everybody for so long now that nobody can afford to keep up anymore (80% or so anyway) and we can't figure out why the system isn't sustainable any more? Nobody got this figured out by now? 

Come on...

“Joe Biden is pretending this isn’t a bailout. It is,” former South Carolina Gov. Nikki Haley said, arguing that depositors at other banks now are “forced to subsidize Silicon Valley Bank’s mismanagement” and that bank customers will ultimately be responsible for the costs if the insurance fund is drained."

(IF?, Really?)

"Sen. Tim Scott, R-S.C., the top Republican on the Senate Banking Committee who is eyeing a presidential bid, also criticized what he called a “culture of government intervention,” arguing that it incentivizes banks to continue risky behavior if they know federal agencies will ultimately rescue them."

(Now I know for real the End times are starting,

I'm agreeing with Republicans lol :-)

"...it incentivizes banks to continue risky behavior 

if they know federal agencies will ultimately rescue them."

It's not 

"bad management"

making 

"risky bets".

It's more like:

Screw it, the federal government will just have to do what they did before.

Queue buddy's wife:

"We've already seen this TV Show!"

I asked when they said they would cover deposits 100%not just up to $ 250,000 as per normal FDIC policy.

"They gonna do that for all of 'em"?

Meaning other banks.

If Depositors are going to be covered?

And investors not?

Why did we ever allow traditional banking and Investment banking to merge in the first place?

Oh yeah...

$.

We never should have repealed Glass–Steagall.

Period.

Thx Bill.

(Thats sarcasm btw)

"White House and other administration officials are insisting their actions are not a bailout. But Harvard University economist Kenneth Rogoff said while he agrees that the government is rightly protecting the two banks’ depositors, the money spent to make them whole is “certainly a bailout.”

“The government swore after the financial crisis it was not going to bail out uninsured depositors and it was not going to bail out money funds,” Rogoff said. “It basically, as I understand it, is guaranteeing everything. So that’s certainly a bailout.”

My Buddy's wife is already sounding like a broken record and we got Credit Suisse and Deutsche bank coming up on the horizon.

"Avarice and greed are gonna drive you over the endless sea

They will leave you drifting in the shallows

Or drowning in the oceans of history

Traveling the world, you're in search of no good

But I'm sure you'll build your Sodom like you knew you would

Using all the good people for your galley slaves

As you're little boat struggles through the warning waves, but you don't pay

You will pay tomorrow

You're gonna pay tomorrow, yeah

You're gonna pay tomorrow"