Above; The Big T having a “Phil” moment
First Republic Bank is in trouble (MSN). Investor confidence went south after the seizure of Silicon Valley Bank in March (PBS). The drop in stock prices has hurt this mid sized bank’s portfolio and regulators had to step in.
Analysts are citing three reasons for the failure of mid sized banks this year. They point to the mismanagement by the banks’ officers, particularly their investments and limited scope. The Fed is partially to blame for not investigating these banks sooner and taking steps earlier to prevent their fall.
The third reason cited is S.2155 – Economic Growth, Regulatory Relief, and Consumer Protection Act (congress.gov). This law removed regulations imposed during the Obama era after the Great Recession of 2008 on banks worth more than $50 B and raised the threshold to $250 B. First Republic Bank was worth $209 B before it started to tank. S.2155 was passed on a largely Republican vote in Congress and signed into law by then president Donald Trump (CNN). Of course, Trump has since attempted to lay the blame on President Biden.
Deregulation rears it’s ugly and stupid head yet again. The repeal of the Glass-Steagall Act (History) in 1999 and the signing of the Federal Information Security Modernization Act of 2002 (cio.gov) banks began to prove Ayn Rand wrong. The financial institutions started down a path of self destruction worthy of lemmings on the march. Because without regulations CEOs, who are concerned with making it to retirement, don’t give a damn what happens after they leave.
Both parties backed the repeal of Glass-Steagall. The left considered it a way to get more people into houses and the right considered it a way to get filthy rich. The truth, they got conned be the fascist socialist giants who want to destroy the US economy and sell their Marxist product as a way to fix it.
The Neo-Con faction was a socialist led faction of the democratic party. They changed parties in the 1960s having been disaffected by the Vietnam protests and counterculture. They followed the same fascist, socialist giants (most of them unknowingly) to the deregulation mantra, repeated endlessly. Why? Because they want to destroy the US economy and sell their Marxist product as a way to fix it.
BUT WAIT! Trump was the anti – Neo Con president that was going to fix the Republican Party right?
Wrong. Trump was supposed to drive voters on the right back to the Neo Con fold by being the buffoon that he is. The problem was he became more popular. Some people actually liked his antics and rhetoric. The head giant got jealous and took over the handling. Another attempt to sabotage the US financial sector slipped through the cracks.
These banks will be bought by larger banks who are also too big to fail.
Related; “Why Banks Keep Failing” The Atlantic