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☆ 'Shark Tank' star Kevin O'Leary is blaming Silicon Valley Bank's implosion on a 'negligent board of directors' with 'idiot management'
▼ + stars: | 2023-03-14 | by ( Cheryl Teh | ) www.businessinsider.com time to read: +3 min

Kevin O'Leary has blamed Silicon Valley Bank's management for the bank's implosion. Silicon Valley Bank collapsed after a bank run, and there are differing opinions on why that happened. The Federal Deposit Insurance Corporation took control of Silicon Valley Bank on Friday after a catastrophic bank run. There has been mud-slinging in all directions over the factors that may have contributed to Silicon Valley Bank's failure. Representatives for Silicon Valley Bank did not immediately respond to Insider's request for comment outside regular business hours.

☆ Joe Manchin says he looks at his 2018 vote on easing bank regulations 'differently now' after Silicon Valley Bank's collapse
▼ + stars: | 2023-03-14 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

In 2018, Sen. Joe Manchin was one of 13 Democrats to vote for easing some banking regulations. The rollback of those regulations meant that Silicon Valley Bank was subject to less scrutiny. That vote has come under renewed scrutiny after the abrupt shuttering of Silicon Valley Bank (SVB) and subsequent bailout of its depositors. Manchin did tell Raju that it was not a mistake to vote through that 2018 legislation, or at least it wasn't at the time. Other Democratic lawmakers who also voted for the 2018 legislation are similarly standing by their decisions.

SVB's meltdown sparked a partisan battle in Washington on Monday, with Democrats arguing that a Trump-era change to bank oversight rules undermined the stability of regional banks. In the money markets, indicators of credit risk in the U.S. and euro zone banking systems edged up. [1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023. On Monday morning, U.S. bank regulators sought to reassure nervous customers who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. A furious race to reprice interest rate expectations also sent waves through markets as investors bet the Fed will be reluctant to hike next week.

Silicon Valley Bank had $209 billion in assets at the end of last year, while Signature Bank had some $110 billion. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by (Republican former President) Donald Trump that I strongly opposed," Senator Bernie Sanders said in a statement. he added, saying awareness of the bank's recent growth and business model should have led Fed officials to anticipate trouble. In an op-ed for the New York Times, Democratic Senator Elizabeth Warren placed some of the blame at the feet of bank regulators, whom she accused of "letting financial institutions load up on risk." "There won't be legislation getting through Congress, and so regulators will be making the big decisions," he said.

☆ Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
▼ + stars: | 2023-03-13 | by ( Christina Wilkie | ) www.cnbc.com time to read: +3 min

WASHINGTON — Plans announced Sunday to fully reimburse deposits made in the collapsed Silicon Valley Bank and the shuttered Signature Bank will rely on Wall Street and large financial institutions — not taxpayers — to foot the bill, Treasury officials said. The DIF currently has over $100 billion in it, a sum the Treasury official said was "more than fully sufficient" to cover SVB and Signature depositors. To that end, federal officials strongly pushed back on the idea that the plans for SVB and Signature constituted a "bailout." Sen. Bernie Sanders, I-Vt., insisted that "If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions." On Sunday afternoon, Treasury approved of plans that would unwind both SVB and Signature Bank, based in New York, "in a manner that fully protects all depositors."

☆ The rescue of SVB and Signature Bank depositors creates the incentive for more bank runs, Wharton finance professor says
▼ + stars: | 2023-03-13 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

The rescue of Signature and SVB depositors incentivizes more bank runs, a Wharton professor said. "The contagion risk is that there is a run on other banks that are financed by a large fraction of uninsured deposits." "But then it leaves the incentive for uninsured depositors at other banks to run." "The contagion risk is that there is a run on other banks that are financed by a large fraction of uninsured deposits," Drechsler said. Barney Frank, who co-authored the original bill and helped oversee Signature Bank, doesn't blame Trump's policy changes, however.

☆ GOP presidential contenders cast blame for Silicon Valley Bank collapse
▼ + stars: | 2023-03-13 | by ( Kevin Breuninger | ) www.cnbc.com time to read: +5 min

Employees stand outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Former President Donald Trump and other 2024 Republican presidential hopefuls spoke out over the weekend on the failure of Silicon Valley Bank , offering early hints of their varied approaches to the markets. Silicon Valley Bank, or SVB, was shuttered by financial regulators last week, marking the largest failure of a banking institution since the 2008 financial crisis. Nikki Haley on Saturday night declared, "taxpayers should absolutely not bail our Silicon Valley Bank." "Now depositors at healthy banks are forced to subsidize Silicon Valley Bank's mismanagement.

☆ Republicans are slamming the bailout of Silicon Valley Bank's customers, saying it's a giveaway to the rich
▼ + stars: | 2023-03-13 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +6 min

Federal regulators bailed out Silicon Valley Bank depositors following its Friday collapse. The joint statement made from the Treasury, Federal Reserve, and FDIC noted that the bailout will not be funded by taxpayers — the FDIC's insurance fund, which stands at about $125 billion, will cover all SVB depositors. "I don't know if making money's now woke," Baker said. "Banks like S.V.B. President Joe Biden referenced the 2018 law in Monday remarks on SVB, saying that "we must reduce the risks of this happening again."

☆ Bernie Sanders says Silicon Valley Bank's failure is the 'direct result' of a Trump-era bank regulation policy
▼ + stars: | 2023-03-13 | by ( Cheryl Teh | ) www.businessinsider.com time to read: +4 min

Sen. Bernie Sanders is blaming a Trump-era policy for the Silicon Valley Bank run. "Now is not the time for US taxpayers to bail out Silicon Valley Bank. The Federal Deposit Insurance Corporation shut down the Silicon Valley Bank on Friday following a catastrophic bank run. The collapse of Silicon Valley Bank has now become the largest bank failure in the US since the 2008 financial crisis. However, startups with money in Silicon Valley Bank exceeding $250,000 are now in danger of not being able to make payroll next week.

☆ Silicon Valley Bank's spectacular implosion shows how digital banking can decimate a lender in 24 hours
▼ + stars: | 2023-03-13 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +5 min

Silicon Valley Bank's rapid implosion showed how bank runs can go at warp speed in the digital age. But while digital banking meant SVB's collapse accelerated to warp speed, its foundations had been left shaky. Digital banking, and the expectation of instantaneous transactions, is now the norm for the internet generation. Bianco said SVB's collapse should "scare the hell" out of bankers and regulators worldwide. Nigel Green, CEO of deVere Group, an independent financial adviser, said SVB's collapse had brought Trump-era deregulation into question.

☆ GOP House Oversight chairman James Comer criticizes Silicon Valley Bank as 'one of the most woke banks'
▼ + stars: | 2023-03-13 | by ( Cheryl Teh | ) www.businessinsider.com time to read: +3 min

James Comer attributed Silicon Valley Bank's failure to its "woke" ESG investments. "This could be a trend and there are consequences for bad Democrat policy," Comer said on Sunday. Silicon Valley Bank's clients started running for the exits after the bank's management sold $21 billion worth of bonds at a $1.8 billion loss. It has become the biggest bank failure in the US since the 2008 financial crisis. Representatives for Comer and Silicon Valley Bank did not immediately respond to Insider's requests for comment sent outside regular business hours.

☆ Why Trump is being called out in the Silicon Valley Bank collapse
▼ + stars: | 2023-03-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some Democrats have been blaming Trump-era regulations for Silicon Valley Bank's collapse. In 2018, Trump signed into law a bill that rolled back provisions in the Dodd-Frank Act and loosened oversight over banks. On Friday, regulators shut down Silicon Valley Bank following a tumultuous few days of failing to raise capital and a flood of customers withdrawing their funds from the bank. "Greg Becker, the chief executive of Silicon Valley Bank, was one of the ‌many high-powered executives who lobbied Congress to weaken the law," Massachusetts Sen. Elizabeth Warren wrote in a Monday opinion piece. Vermont Sen. Bernie Sanders said in a statement that the "failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed."

☆ Relax, SVB's implosion is nothing like the 2008 financial crisis, and the economy will be fine
▼ + stars: | 2023-03-13 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

But it's not a repeat of the 2008 financial crisis, when the government stepped in to support the US banking system. In recent days, many have drawn comparisons to the 2008 financial crisis, when the federal government doled out roughly $200 billion to hundreds of banks to support the US banking system. The size of SVB's bank failure has only been surpassed once in American history — by Washington Mutual when it collapsed in 2008. While the economy and markets aren't the same thing, a struggling market can be a negative leading indicator for a weakening economy. If the US economy does enter a recession as some experts expect, SVB's failure is unlikely to be the reason why.

☆ All the President’s Tax Increases
▼ + stars: | 2023-03-10 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

President Joe Biden speaks about his budget proposal for 2024 during a speech at a Northeast Philadelphia union hall on March 9. The press is reporting that President Biden’s 2024 budget proposal released Thursday would cut the deficit by $3 trillion over 10 years. The President’s $6.89 trillion proposal is a political document that sets up his re-election campaign. Its spending and tax proposals were rejected in the last Congress under Democratic majorities and have no chance of passing with a GOP House. But the budget shows where Mr. Biden wants to take the country if he wins a second term.

☆ Biden budget calls for 'protecting and strengthening' Social Security
▼ + stars: | 2023-03-09 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

Days after introducing a new plan to shore up Medicare, President Joe Biden called for "protecting and strengthening" Social Security with the introduction of his fiscal 2024 budget on Thursday. With the budget, the president reaffirmed his intentions to reject any proposed cuts to Social Security or Medicare. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., have also led a plan that would make income over $250,000 subject to Social Security taxes. At the same time, the budget also indicates that the administration "looks forward to working with Congress to responsibly strengthen Social Security by ensuring high-income individuals pay their fair share." Biden has proposed raising Medicare taxes to 5%, from 3.8%, for both earned and unearned income over $400,000.

☆ Bernie Sanders says Marianne Williamson will run a 'strong campaign' and raise 'very important issues' in 2024
▼ + stars: | 2023-03-08 | by ( Bryan Metzger | ) www.businessinsider.com time to read: +3 min

Bernie Sanders told Insider that she'll run a "strong campaign and raise very important issues." Sanders has said he supports Biden in 2024, but his praise for Williamson contrasts with other Democrats. Williamson — a self-help author, spiritual leader, and 2020 presidential candidate — is currently the only well-known Democrat to officially launch a presidential campaign. "I'm sure she's going to run a strong campaign and raise very important issues." Democratic Sen. Elizabeth Warren of Massachusetts, by contrast, was firm in her support for Biden when asked about Williamson's campaign.

☆ A senator who ran a multimillion-dollar plumbing business claimed he only took a $50,000 salary. His financial statements show otherwise.
▼ + stars: | 2023-03-08 | by ( Jack Newsham | ) www.businessinsider.com time to read: +3 min

Republican Senator Markwayne Mullin had a heated argument with the head of a union on Wednesday. Mullin claimed he only paid himself a $50,000 salary and "invested every penny" into his business. While lambasting Teamsters president Sean O'Brien for his nearly $200,000 salary, Oklahoma's Senator Markwayne Mullin claimed that he paid himself a salary of just $50,000 when he ran a plumbing business. I kept my salary down at about $50,000 a year because I invested every penny into it," Mullin replied. He reported between $200,000 and $2 million in income in 2012 from two family companies, Mullin Plumbing Inc. and Mullin Plumbing West, and another $15,000 to $50,000 from shares he held in a bank.

☆ Oklahoma Republican tells Teamsters president 'shut your mouth' in terse exchange at Senate hearing
▼ + stars: | 2023-03-08 | by ( Chelsey Cox | ) www.cnbc.com time to read: +5 min

WASHINGTON — A Republican lawmaker Wednesday told Teamsters General President Sean O'Brien to "shut your mouth" in a terse exchange at a hearing examining so-called union busting by U.S. companies. O'Brien said the International Brotherhood of Teamsters had examples of employers illegally pressuring workers not to join unions. When O'Brien said Mullin was out of line, the lawmaker shot back: "You need to shut your mouth." "You think you're smart? You think you're funny?

☆ Premarket stocks: Jerome Powell's testimony sent markets reeling. That may be a good thing
▼ + stars: | 2023-03-08 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Federal Reserve Chairman Jerome Powell on Tuesday cleared the way for larger interest rate hikes at this month’s central bank policy meeting, sending markets into a tailspin. The S&P 500 fell 1.5%, the Dow dropped 575 points, or 1.7%, and the tech-heavy Nasdaq composite ended 1.3% lower. After Powell’s testimony, market expectations for a half-percentage point rate hike spiked. If inflation fails to continue falling, he said, the Fed will keep trying to cool things down by raising rates. Even if Powell was sure that January’s economic data was a fluke, he still wants to maintain the Fed’s credibility.

Schultz will testify on March 29 before the Senate Health, Education, Labor and Pensions Committee, the company and panel chairman Senator Bernie Sanders said on Tuesday. Schultz, who is stepping down from his post this month, had earlier declined an invitation from 11 senators to testify before the panel on March 9. The company previously rebuffed requests by Sanders for him to appear, instead offering for other executives to testify. "I look forward to hearing from him as to when he intends to end his illegal anti-union activities and begin signing fair first contracts with the unions," Sanders wrote on Twitter. Employees at more than 280 out of its roughly 9,000 company-operated U.S. locations have voted to join a labor union since 2021.

☆ Starbucks CEO agrees to testify before US Senate panel
▼ + stars: | 2023-03-07 | by ( Kanishka Singh | ) www.reuters.com time to read: +2 min

WASHINGTON, March 7 (Reuters) - Starbucks Corp (SBUX.O) interim Chief Executive Officer Howard Schultz has agreed to testify this month before a U.S. Senate committee, the company and panel chairman Senator Bernie Sanders said on Tuesday. Schultz will testify on March 29 before the Senate Health, Education, Labor and Pensions Committee after he had earlier declined an invitation from 11 senators to testify before the panel on March 9. Employees at more than 280 out of its roughly 9,000 company-operated U.S. locations have voted to join a labor union since 2021. Sanders had called on Schultz to testify at a hearing on the company's compliance with labor law. Starbucks had previously noted Schultz was stepping down as CEO this month and said he was not the right witness.

☆ Starbucks’s Howard Schultz to Testify About Union Activity Before Senate Committee
▼ + stars: | 2023-03-07 | by ( Heather Haddon | ) www.wsj.com time to read: 1 min

Starbucks Corp. interim Chief Executive Howard Schultz has agreed to testify before a Senate committee, Vermont Sen. Bernie Sanders said Tuesday, the latest development in the 18-month conflict between the company and U.S. baristas seeking to unionize. Mr. Sanders, an Independent who is chairman of the Committee on Health, Education, Labor and Pensions, has accused the company of flouting federal labor laws, allegations that the company denies. Mr. Sanders has alleged that Starbucks, under Mr. Schultz’s leadership, has “done everything possible to prevent” unionization and collective-bargaining efforts.

☆ Bernie Sanders successfully cajoled Starbucks CEO Howard Schultz into testifying before a Senate committee on labor practices
▼ + stars: | 2023-03-07 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

Interim Starbucks CEO Howard Schultz has agreed to testify in front of Sen. Bernie Sanders' committee. Sanders chairs the Health, Education, Labor, and Pensions Committee (HELP), and wanted to subpoena Schultz to testify. Now, Schultz has agreed to testify on March 29 about the firm's alleged anti-union activities. Ahead of that vote — which was scheduled for Wednesday — Sanders said that Schultz has "finally agreed to testify." Sanders also thanked the members of his committee, "who, in a bi-partisan way, were prepared" to vote to subpoena Schultz.

☆ 126 Democratic lawmakers reaffirm to Biden that they think his student-loan forgiveness plan is legal — and they 'expect the legal challenges to the plan will fail'
▼ + stars: | 2023-03-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

126 Democratic lawmakers sent a letter to Biden expressing support for his student-debt relief plan. GOP lawmakers have continued to challenge the legality of his plan. Since Biden's debt relief plan was announced, many Republican lawmakers attacked that relief as unfair, costly, and an overreach of executive authority. Some Republicans have also recently introduced legislation to end the student-loan payment pause and block Biden from canceling student debt broadly. "The President has the legal authority to cancel student debt," Missouri Rep. Cori Bush wrote on Twitter on Tuesday.

☆ Starbucks CEO Howard Schultz agrees to testify at Senate hearing after subpoena threat
▼ + stars: | 2023-03-07 | by ( Amelia Lucas | ) www.cnbc.com time to read: +2 min

Starbucks CEO Howard Schultz has agreed to testify in a U.S. Senate hearing about the coffee chain's alleged union busting after pressure from Sen. Bernie Sanders. The Senate's Health, Education, Labor and Pensions, or HELP, Committee was scheduled to vote Wednesday morning on whether to subpoena Schultz, who previously declined a request to appear. Schultz is now scheduled to appear at a March 29 hearing. More than a year after Starbucks Workers United won its first election, none of the cafes have agreed to a contract with Starbucks yet. Starbucks has lodged more than 100 of its own complaints against the union, alleging intimidation and harassment.

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