Politician Ro Khanna shares concerns over inadequate regulations on banks
A thread on some of my takeaways from the SVB collapse. SVB is in my district, but I did not hesitate to tell them no when they lobbied hard for Donald Trump's bill to weaken Dodd-Frank. I voted against the bill. Too many Dems voted yes.
The run on SVB is a reminder of the need to impose strong financial regulations on banks. The Republican Party succeeded in passing the bill eviscerating Dodd-Frank against the warnings of progressives like myself and @BernieSanders.
Medium-sized banks like SVB managed to avoid stress tests/liquidity and capital requirements that could have prevented this predictable disaster.
Shareholders and executives at banks like SVB should not benefit from either taxpayer dollars or the help of the FDIC to secure buyers without being compelled to submit to regulations that amount to more than a slap on the wrist.
SVB chief executive Greg Becker sold $3.6 million worth of shares on February 27th. I have said that there should be a clawback of that money. Whatever his motives, and we should find out, that $3.6 million should go to depositors.
.@LeverNews has reported on the successful efforts of bank lobbyists to avoid paying more into the Deposit Insurance Fund. This is shameful. Banks must pay higher premiums to fund depositors’ insurance. This will incentivize more responsible management and less risky behavior.
