Robert: To your earlier point about SVB's lending practices , , ,
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Posted by: Russ Walden ®

03/13/2023, 11:45:08
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"

SIVB went bananas with its lending following the pandemic courtesy of
all the bail-out/ stimulus money. SIVB was the bank for:

1) Some 1,500 climate and energy-tech companies.

2) More than 60% of all community-based solar financing.

3) Countless “woke” programs that financed politically-tied entities/ startups.

Look,
a bank can lend money to whoever it likes… but when you throw lending
standards out the window and start loaning money based solely on
political ideology (as opposed to whether or not the person/ business
could ever pay you back) it’s a recipe for disaster."

---

Regards,

Russ







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The more you hear about them, the worse it gets.
Re: Robert: To your earlier point about SVB's lending practices , , , -- Russ Walden Post Reply Top of thread Forum
Posted by: robertb ®

03/13/2023, 22:07:20
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Every one of the decision makers should be held accountable. A lot sounds like it should be criminal behavior. Probably won't matter.

Same for the auditors and oversight boards. Certainly whichever federal official that gave them a waiver on some of the rules should go down too, but won't. 

I don't understand how a bank can go for most of a year without anyone in charge of risk management. 

As usual, regardless of what they tell us, the taxpayer will be the one holding the bag. 

Oh, and did you see that FDIC is holding 1.2 TRILLION in unrealized losses on the books right now? The banks can get away with it because the Fed is even worse.






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'Sounds like we not only need a new sheriff, we also need a carnifex...
Re: The more you hear about them, the worse it gets. -- robertb Post Reply Top of thread Forum
Posted by: LateForLunch ®

03/14/2023, 14:34:02
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...to punish the miscreants. Having zero accountability for people who engage in "correct thought" is a Marxist, cacogenic thing. Genuine meritocracy does not permit such things. 

What I have seen of analyst's opinions is in agreement that years of low interest rates fueled a "looting" mentality in the investment banking sector. People figured out that they could get rich taking outrageous risks with borrowing and know that the gummint would in some form or fashion bail them out so they got to keep the money - so there was no downside to irresponsible lending.

As I suspected, it smells just like the AIG mortgage lending collapse - the SEC did absolutely NOTHING to protect investors EXCEPT at the highest levels. 

Stupid me, I didn't know we were not a free representative Constitutional republic, but a plutocratic oligarchy bent toward Marxists. 

REUAGE!!! 








Modified by LateForLunch at Tue, Mar 14, 2023, 14:38:44

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