Trumps bank reregulation added to Bank problems

.............. “I agree that the 2018 deregulation contributed to the problem,” Michael Ohlrogge, associate professor at the New York University School of Law, told us via email. “Basically, the deregulation made it more likely that we would have a crisis such as this, and more likely that it would be worse in the event that it did happen. One of the key reasons for this is that the 2018 deregulation reduced the amount of shareholder money that banks need to use to finance their asset acquisitions. Banks are required to have minimum amounts of shareholder money funding their assets so that if those assets drop in value, there is enough of a ‘cushion’ of shareholder value to take losses, before those losses take a hit out of depositor recoveries. So, without the 2018 deregulation, it is likely that SVB would have had a larger buffer of shareholder money to absorb losses, making it less likely that there would have been a panic in the first place, and given that there was a panic, the losses to depositors likely would have been less. .........

https://www.factcheck.org/2023/03/what-to-know-about-trump-era-bank-deregulation-and-bank-failures/

Yes, that sounds logical. It's happened in the past in the US.
A run on a bank in the US due to poor/loose bank regulations.

I'm sorry, sporty, but Trump did not cause the financial collapse of those banks. They collapsed on their own with no "help" from anywhere. Just because your car can go 150 mph down the street doesn't mean you should drive that fast.

This guy has a real Thang for trump doesn't he

The problem, as I read it - and as banking and financial experts are explaining - is, Zero Interest. It has led banks to invest in low-yield Treasury bonds as a place to park their money - since lending it out exposes them to risks with virtually no return.

Trump didn't create the Financialization Era, with ZIRP, QE...but he didn't stop it, either. He actually said once, we should go to NEGATIVE interest rates, the way the European Central Bank was trying.

Paying people/businesses to borrow money. Can you say "Malinvestment," kids?

The problem with goosing the economy with rigged interest rates and money-printing, is, that like a stretched spring, it WILL return - suddenly, if it is stretched to the breaking point. This time it wasn't even that sudden - it was Powell trying to normalize interest rates, as a make-believe cure for inflation (the real cure for inflation is to stop inflating the currency base; that is, stop money-printing). So he tried gradually; but all Wall Street, including banks, ESPECIALLY Woke banks, thought he'd reverse ("pivot"). That was their fantasy - return to free money. So they could keep on buying stawks for their house accounts, the stawk market would start rising magically; and they wouldn't have to hedge all their bond accounts.

Now. Regulation does play a part in this - how banks have to account and value long-term bonds, on their books. But that's a small part.

The BIG part of this, is distortion of the economy with manipulated interest and with currency debasement.