Dog Bites Man: Warren Trots Out Usual Dumb Ideas vis a vis Bank Collapse

Source: Common Dreams

“U.S. Sen. Elizabeth Warren on Monday weighed in on the collapse of Silicon Valley Bank, taking to The New York Times'[s] opinion section to offer her view on how the financial institution failed, while also looking ahead and detailing ‘what Washington must do — quickly — to prevent the next crisis.’ Namely, the Massachusetts Democrat wrote, the federal government must ensure the bank’s risky behavior isn’t rewarded with bonuses and generous compensation for executives, and must determine whether insider trading tipped off Silicon Valley Bank (SVB) executives regarding their firm’s impending failure last Friday. Joining other progressives … in noting that Republican lawmakers’ push to roll back oversight and liquidity requirements allowed SVB to ‘load up on risk’ and made it more vulnerable to failure, Warren pointed to the conduct of bank executives just before the Federal Deposit Insurance Corporation (FDIC) was forced to save the institution.” (03/13/23)