In recent decades Republicans (and a few “corporate Democrats”) have “de-regulated” banks. This means they abolished the protections that have protected us since the 1930s from reckless, stupid and corrupt behavior by banks. This led to the gigantic crash of 2008, which hurt many millions of Americans (and caused many to lose their homes). More recently, the Republicans (and a few “corporate Democrats”) DE-REGULATED BANKS even worse. This led to several gigantic banks crashing in March 2023.
In 2009, the very experienced U.S. Senator Dick Durbin said this about the U.S. Senate: “Frankly, the banks own this place.”
In March 2023 several gigantic banks crashed. De-regulating them in recent years was part of what caused them to crash. These resources provide more information and insights:
On March 15, 2023, Bernie Sanders wrote: “In America today, if you’re a wealthy vulture capitalist with over $250,000 in uninsured deposits at a loosely-regulated bank, the federal government will guarantee that your money is safe in a weekend. If you’re a struggling working person with no health insurance and get cancer, you’re on your own. That’s what Martin Luther King Jr. would call ‘socialism for the rich and rugged individualism for the poor.'”
Article posted March 13, 2023: “Why the Banking System is Breaking Up”: Why the Banking System is Breaking Up
Article posted March 14, 2023: Economics professor explains why SVB and Signature Bank failed so fast: https://www.alternet.org/svb-signature-bank/?recip_id=22838&list_id=2
Article posted March 14, 2023: How ‘new technologies’ and ‘inadequate regulation’ hastened SVB’s ‘predictable’ collapse: economist: https://www.alternet.org/silicon-valley-warren/?recip_id=22838&list_id=2
Article posted March 14, 2023: Bankers Lobbied for Deregulation, Congress Capitulated, and Now Banks Are Collapsing: The Silicon Valley Bank collapse doesn’t require a bailout. It requires stronger bank oversight and the repeal of the 2018 “economic growth” act. https://www.thenation.com/article/economy/silicon-valley-bank-congress-deregulation/
Link to March 14, 2023, Democracy Now! broadcast and transcript: “How Silicon Valley Bank & Signature Bank Lobbied to Weaken Regulations That Could Have Prevented Collapse” https://www.democracynow.org/2023/3/14/svb_signature_bank
Article posted March 13, 2023: “Long Before Silicon Valley Bank’s Collapse, Its CEO Helped Kill Tougher Oversight of Banks Like His” Greg Becker successfully pushed Congress to weaken risk checks enacted after the 2008 financial crisis. https://www.motherjones.com/politics/2023/03/silicon-valley-bank-greg-becker-dodd-frank/
More articles were posted — and several persons have recommended sensible solutions. Contact me if you want more.
