The Problem With Jon Stewart

Making Cents of SVB’s Collapse With Mark Cuban and Sheila Bair

Wed Mar 15 2023

The FDIC was created during the Great Depression to prevent bank runs and still exists today to backstop deposits.
Silicon Valley Bank's high percentage of uninsured deposits was a risk that ultimately led to its collapse.
The rollback of liquidity goals for banks between $50 billion and $250 billion in 2018 was a mistake, and normal regulation is difficult for these banks to undertake.
Dodd-Frank and Glass-Steagall were put in place to prevent situations like Silicon Valley Bank's failure.
The current $250,000 cap on deposit insurance is not enough to protect small depositors and businesses.
The government should provide emergency insurance for transaction accounts to protect them.
Silicon Valley's ethos of risk-taking is undermined by the government's tendency to bail out big tech companies, creating an unfair advantage and a lack of true risk.
The bank failure primarily affected large depositors, including some with hundreds of millions of dollars.
The failure to backstop foreclosures is a systemic problem.
Lobbying against regulators makes it difficult for them to crack down on banks.
Trust is the ultimate product for the US banking system, and Congress needs to change laws to make banks more conservative and protect all deposits.
Billionaire and millionaire investors have relaxed banking rules, leaving everyday people vulnerable.
The moral hazard for incompetent bankers needs to be addressed with accountability and pain felt by those who have performed poorly.
The loosening of regulations on stress testing for banks has led to problems being hidden until a bank run occurs.