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What happened at SVB? Will this be Biden’s Waterloo?

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What happened at SVB? Will this be Biden’s Waterloo? I find it amusing that the left is now using their old stand by. Things went wrong so it must be Trumps fault. First we had a run on SVB. 40 BILLION in withdrawals in one day would bring down most banks. Also the Fed stopped doing the stress tests on banks in 2018. And it’s coming out that this bank as of late has been mismanaged.

Who was the Fed chief in 2018? If you guessed Powell, you’re correct. Same guy who’s raising these interest rates and caused the inflation to continue. And of course Biden reappointed Powell after Trump admitted he made a mistake appointing Powell in 2018.

“SVB’s institutional challenges reflect a larger and more widespread systemic issue: The banking industry is sitting on a ton of low-yielding assets that, thanks to the last year of rate increases, are now far underwater — and sinking,” wrote Konrad Alt, co-founder of Klaros Group.

Alt estimated that rate increases have “effectively wiped out approximately 28% of all the capital in the banking industry as of the end of 2022.”

Under the Obama- Biden administration, hundreds of banks failed. Is this a repeat of past performance? We have had I believe six banks that have ben shut down. This isn’t over and let’s see how this administration handles things. See the chart below.

Hundreds of Banks failed under Biden and Obama.

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