LETTER: Blame Trump for SVB collapse
A vault inside a Nevada State Bank branch at 750 E. Warm Springs Road on Thursday, March 23, 2017, in Las Vegas. (Christian K. Lee/Las Vegas Review-Journal) @chrisklee_jpeg
Woke Silicon Valley Bank? It’s obvious Victor Joecks (March 15 column) has no understanding of the term “woke.” That said, he gave every right-leaning talking point for why SVB failed except for the correct two.
First, the previous administration gutted several important rules of the Dodd-Frank bill, which allowed SVB to raise its reserve requirements. Second, bank honchos invested in long-term bonds in an era when interest rates were fast rising. They needed to sell those bonds at a loss in order to cover the demanded cash withdrawals.
The light of truth helps people understand.
