Silicon Valley Bank collapses [and First Republic Bank]

Parent Cafe
391

A page on the legislative and regulatory background of the SVB and FRB failures:

https://www.fastcompany.com/90889743/what-went-wrong-at-first-republic-bank

Briefly:

  • 2010: Dodd-Frank Act required greater regulations on banks with >$50 billion in assets.
  • 2018: Legislative rollback of greater regulation, now only applies to banks with >$250 billion in assets, though the Federal Reserve had the option to impose regulation on banks with $100-250 billion in assets. The banking industry lobbied for this, of course.
  • The Federal Reserve did not actually use that option on banks with $100-250 billion in assets.

Not in the above page, but it looks from the banks’ older financial reports that First Republic Bank crossed the $100 billion level in 2019, and Silicon Valley Bank crossed that level in 2020. They crossed the older $50 billion level in 2015 and 2017 respectively.

1 Like