their liberal wokeness than on the actual ability for tha borrower to pay the loans back to be clear, this was the bank the peter kiel, the big trump back, or the big billionaire right-wing do, his fines put their money there. this was the bank of the silicon valley tech rose this bank. the woke bank. in a recent wall street journa op-ed anti cancer makes it mor clear, he says, silicon valley bank board consists of 45% women, one, black one lgbtq+ and two veterans i m not saying 12 white me would ve avoided this mess, bu the company may have bee distracted by diversit demands. [laughter] wow! i guess, well, i don t want to put words in his mouth or could he not saying it but when he did say was, th woman, the one black, either one gay person, not to mention
going to be focusing on in the weeks and months ahead renato, regular jurors ma have been asleep at the whee leading up to this but once a crisis like thi happens, it s like the regulatory medical examine show up. and they dig through every page, every line, every person involved help us understand how cla backs work once they are in receivership, the silicon valley bank, can t a lot of this money start to come back? if, for example, goldman sachs made a ton of money off of the selling their treasuries if fo example, these regulators were selling too much information, coul this money get clogged back? great question. i think those two situations are different and the second one would wave more than a cla back it would be very site seriou liability for executives at the bank so, in addition to potential sock stock sales when they had inside information, somethin that necessarily would be more
this during the obama bide administration, we placed toug requirements on banks like silicon valley valley bank and signature bank including the dodd-frank law t make sure that the crisis we saw in 2008 would not happen again. unfortunately, the las administration rolled back som of these requirements. asking congress and the making régis s traitors to strengthen the rules of the banks to make it less likely that this kin of bank failure would happen again. and protect american jobs an small businesses in an op-ed piece in today new york times entitled silico valley bank is gone, we know who is responsible, senato elizabeth warren had no doub who to blame saying, quote, these ban failures were entirely avoidable if congress and th fed had done their jobs an kept strong banking regulation in place since 2018. senator warren expanded on tha point in a must-see intervie with rachel maddow tonight here is senator warren, on the
oftentimes, it s ambiguous did this regulation no, here it s not ambiguous. if they had not weakened regulation in 2018, the silico valley bank would have bee subject to regular stres tests. one of the things you do in stress test, you go, what woul happen to this bank s finances if interest rates went up by three, four, five percentage points they would have caught this. and i, mean the banks ar cutting themselves, but they should ve caught it. you have to raise more capital shed some of your deposits maybe both and they want to be in the against regulation, and yo want, you know, survival of th fittest, or you are pr regulation and you want thes protections. but it s pretty rich to no demand both. so, dean, to that point what do you make of the federa government s actions here so far to contain this crisis a, is it enough? and be, should the governmen be stepping in and for a lac of better word, bail out these banks? i think it will largely b enough, because again, there s no u
stephanie, it s great to see you. great to see you. i know it s been a long day for you as it has been for their markets in this country, and investors. but my question to you is ho did this happen? did anyone see this coming okay, let s make somethin clear, who is it a direc result of? not necessarily politicians. it s a direct result of silico valley bank s bad behavior right? so there s obviously political implications, there s rollback associated with dodd-frank, bu there s silicon valley bank. how did we get here? listen, it was a bank that specialized in servicing the tech industry start-ups. it was the coolest one you could do business with