CAL THOMAS COMMENTARY MARCH 15, 2023
WHAT IS HAPPENING WITH THE BANKS? SVB, THE NATION’S 10TH LARGEST BANK IS NOW BEING BAILED OUT BY THE FEDS. SIGNATURE BANK IN NEW YORK HAS CLOSED.
A WALL STREET JOURNAL EDITORIAL SAID: “YOU CAN’T RUN THE MOST RECKLESS MONETARY AND FISCAL EXPERIMENT IN HISTORY WITHOUT THE BILL EVENTUALLY COMING DUE.
“THE FIRST INVOICE ARRIVED AS INFLATION. THE SECOND HAS COME AS A FINANCIAL PANIC WITH ECONOMIC DAMAGE THAT MAY NOT END WITH THE SILICON VALLEY BANK.”
AT LEAST 20 REGIONAL BANKS WERE HIT WITH TRADING HALTS ON MONDAY. WHY DIDN’T BANK REGULATORS SEE THIS COMING?
ON ITS WEBPAGE THE FEDERAL RESERVE DEFINES THE PURPOSE OF THE AGENCY. IT IS “RESPONSIBLE FOR SUPERVISING, MONITORING, INSPECTING AND EXAMINING CERTAIN FINANCIAL INSTITUTIONS TO ENSURE THEY COMPLY WITH RULES AND REGULATIONS AND THAT THEY OPERATE IN A SAFE AND SOUND MANNER.”
CLEARLY THAT DID NOT HAPPEN WITH SVB AND SIGNATURE BANKS. THE IRONY IS THAT FORMER CONGRESSMAN BARNEY FRANK, CO-AUTHOR OF THE DODD-FRANK MEASURE THAT WAS SUPPOSED TO PROTECT DEPOSITERS, IS ON THE BOARD OF SIGNATURE.
CONGRESS MUST INVESTIGATE AND SOON. I’M CAL THOMAS.
