Former Treasury Secretary Larry Summers joins a panel on CNN Primetime to weigh in on the banking system following the collapse of Silicon Valley Bank, as well as the impact of rising interest rates on bank stability….(read more)
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Former US Treasury Secretary, Timothy Geithner, recently commented on the issue of bank failure, highlighting the importance of effective regulation and supervision in preventing a financial crisis.
Speaking at an event in New York, Geithner discussed the lessons learned from the 2008 financial crisis, which saw the collapse of several high-profile banks, including Lehman Brothers, and triggered the worst global recession since the Great Depression.
Geithner explained that the root cause of this crisis was a combination of excessive risk-taking by banks and lax regulatory oversight, which allowed risky financial products to be sold without proper scrutiny.
He went on to stress the importance of a strong and independent regulator, with the power to intervene early if a bank is heading towards failure, and to take effective action to minimize the impact of any such failure on the wider economy.
Geithner also acknowledged the challenges of implementing such regulation, noting the complex nature of modern banking and financial markets, which makes it difficult to monitor every transaction and assess the risks involved.
However, he argued that the benefits of effective regulation far outweigh the costs, and that the potential consequences of a major financial crisis are too severe to be ignored.
Geithner’s comments come at a time when the US banking sector is again facing increased scrutiny from regulators, following a series of high-profile scandals involving banks such as Wells Fargo and JPMorgan Chase.
Many experts believe that a major overhaul of the banking sector is needed, in order to prevent further scandals and reduce the risk of another financial crisis.
While there is no easy solution to these challenges, Geithner’s insight highlights the need for a coordinated and proactive approach to regulation and oversight, in order to safeguard the stability of the banking sector and the wider economy.
Anyone with a brain should not put more than $250,000. Money should be put in another bank if you can't afford to lose it.
Larry summers is a neoliberal that’s done everything he can to destroy America’s middle class. Don’t even need to watch the video to know his position on this
Federal Government spends money it doesn’t have, through the Federal Reserve.
Milton Friedman:
“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
“Inflation is taxation without legislation.”
The answer is always simple as to why we pay more, Democrats and Republicans spend money we don’t have. Most Americans will blindly buy the narratives of mainstream media, regardless of whether it is factual or not.
The US is not a "capitalist" contry.
What we have is socialism for corporations and personal responsibility for the people.
Hypocrisy to the max from both sides (corporate Democrats and Republicans).
Issue no 1 is bank collapse not inflation. 0.25 or any increase right now is insane.
FJB
Isn't this the same guy that Jon Stewart just skewered with facts on his channel a few days ago?
Can we just admit that the rich have been too greedy for too long? Nobody wants to mention that the president of SVB cashed out 3.5 mil right before it happened? Nobody wants to talk about the fact that C level employees wages have risen 500 to 1000 percent over the last 40 years while the middle class stagnated or even dropped and the lower class has begun to bottom out. Can we please realize that we have been played ever since the 'trickle down economics' scam? For crying out loud how many billions of dollars does one person need? Hot take I know, but I don't think there should be billionaires to begin with. TAX THE RICH AND BRING BACK GLASS-STEGAL!
If people understood how banks really worked nobody would use them. Such a terrible system that is so easy to fail.
The pillars of our Civilization are shaking all over the World – A major shift is coming – The Great Awakening is getting Larger
I have lost all faith in every Government Institution, Medical institutions, Financial Institutions, Mainstream Media, Religious institutions ……. well you get the point – I am all in on Physical Gold, Silver in my possession, Some Bitcoin, Precious Metal stocks, Uranium stocks, copper stock and Nickel stock – My guess, I will remain there for a Decade – Started Years ago and have been sleeping great !
Here is the problem with this flawed logic. For most of us peons interest rate hikes is an attempt to curve uncontrolled spending. So that it is brought back in check & it balances things out.
When spending is to low interest rates are lowered to encourage more spending. It isn't rocket science but here is the problem. The consolidation of wealth is at it's highest point this century.
The ultra rich don't care how high interest rates are. They continue to spend without a backdrop pushing rates even higher. That is not how this was supposed to work.
The whole point of having a central bank was to be able to avoid the booms and busts. However we see there is a recession after every rate hike cylce, EVERY ONE!
In the SVB case the Government is forcing SVB to sell its assets marked Hold-to-maturity, immediately. That is the reason for the loss.
So that loss will be spread to all other banks in the form of FDIC premium for the next year. When Elon Musk Twitted his ridiculous funding secured. It sparked a panic when the CEO of SVB said it wasn't which started a panic. Musk is more trouble then he is worth it seems.
There is a cause for panic… That is bank failure for not having liquidity due to putting savings on risky investments. If the bank stays on traditional Savings & Loans, no huge risk, since loans are always covered by mortgages… This guy is lobbying to avoid the tougher regulations & hinting again of government saving those failed banks… They always called for "Free Market" but everytime the market placed itself on failure, then called for method of socializing the losses….
Americans have been trusting the Government for the past 2 years and its a complete shit show. When someone say's trust us with your life savings and they work for the government. DONT TRUST THEM GET YOUR MONEY OUT OF THE BANK
when the sixes rotate to the nine, the elite, their leaders, the controlling media, and all their professionals, the handler, the grabber, the spammer, the roofer, the driller, who steered the people away from self responsibility, steered them away from neutrality, to then polarize them into bondage to heave one-sided, selfish demands at so called political opponents both foreign and domestic to elevate the power and wealth of a privileged few, all the while ignoring the mass environmental destruction from an overpopulation of consumers, ignoring the deep social declines and the slide into anarchy, ignoring the decent into global war, will have their arms, legs and heads … from their conniving torsos and fed to the starving swine
2, 3, 5, 666, 999999999
I don't see Chinese or Russian civilians out of banks in this awful situation.
The fact that our government is funding 100% of unsecured deposits over $250K is maddening. This means any bank can be reckless with all deposits and if they play fast and loose with depositors $, they don’t have to worry because the fed has set a precedent that they will backstop at 100% of any unsecured deposits. Just let ppl get a federal reserve bank account because that’s what this is. And this WILL be paid by taxpayers.
Americans money may be safe. But the value or purchasing power is not safe. Its constantly eroded by monetary inflation.
Congress failed us again. The GOP bill would had failed but 16 Democratic senators and 36 Democratic representatives joined Republicans to pass the Economic Growth, Regulatory Relief and Consumer Protection Act, generally referred to as S2155.
Just one of them could have stopped this.
Bank run everything everywhere all at once
When he said "tighten credit" why did I interpret that to mean "If you're poor or middle class, brace yourself! You will suffer the most because of the irresponsibility of the rich and powerful." Seems like we have seen this film before. . . ?
This is what happens when you put the Left in charge of anything with >2 layers of complexity… But, hey, they hired some LGBTQ-XYZ+36² type people, so who cares?!
SANTA CLARA, CA — Executives at Silicon Valley Bank are reeling after learning one of the most brutal lessons in banking: if you invest your money irresponsibly, the government will just bail you out.
"This is a tough lesson to learn — the school of hard knocks," said SVB CEO Greg Becker. "After years of investing in woke tech startups that had terrible products, bloated staff, and no conceivable value whatsoever, it's time to pay the piper by experiencing no consequences or accountability whatsoever. Thanks, Biden!"
SVB joins other reputable financial establishments such as Goldman Sachs, Bank of America, and Crazy Al's Payday Loans on the corner of 5th and Main in learning a tough lesson they will not learn from in any way, shape, or form.
"SVB performs an indispensable function in society," Becker continued. "Without us, how would we fund wonderful start-ups pioneering Chinese facial recognition software, or dating apps for queer Communist paraplegics of color? We're grateful for this difficult lesson we've learned and look forward to learning it again in a few years."
At publishing time, sources confirmed the recently bailed-out SVB had collapsed once again.
Meet Carlos Renaldo, Jr. Experts believe he has saved over 3.8 billion lives by heroically wearing a mask alone while in the car. Is he a hero – or a superhero? You decide.
But the type of inflation we are seeing is not solved with just one size fits all rate increases imo. It’s solved with practical supply solutions imo given by supply chain experts, logistics experts, goods and services experts.
interest rate rises have lead to my savings actually making me some money that I can spend instead of half a percent measly little growth
Most everyone back in the -90’s regarded me an imbecile arguing stock used to be a help raise capital to family businesses, argue all of it turned in to a money shoveling fortune game. Me still not owning any stock, looking from the outside in – you guys.. the anxiety, the arfiticial
Better keep your money at home then in the bank
Larry Summers. The POS who talked down to brooksley Bourne. He profited ripping off homes. Pushed people onto the streets and into tents.
Even if you're money is insured the most you will get is $1.50 for every $100 you lose. Get your money out of the bank.
Who says banks are on the brink. Those kinds of statements on news is a problem. He said no problem, but she wants to make it problem for news.
This dude has been wrong! Stop bringing this oligarch sponsored dupe to opine on the economy.