…the FDIC and the polio vaccine. Hope you enjoy bank runs and your children or grandchildren in iron lungs…
Next up for the national razor…
- Thread starter astonmartin708
- Start date
He needs to get his goddamn nose out of policies that hinder his freaking financial doings, but help the general public against bad banking policies that profit banks and hinder fraud, and protect the general public's money. Congress needs to get a pair of balls. Trump is nothing but a bully that has convinced the republican party to help him bully politicians one at a time. Then they end up out of office. Can't lose that way, no matter how warped and self serving your policies are.
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You didn't say the fdic would still be there, just that bank runs wouldn't happen. So do you think the fdic is unnecessary?
or you can mandate the everyone buy HI , and you can dictate that everyone get a vacine in order to work or get fired
We're talking about killing 80 year old, highly regarded institutions..... you think that everything is going to be hunky dorry? That there won't be any impacts?
I don’t support doing away with the fdic. My assumption is the insurance function would be transferred to the treasure department. Again…not what I would prefer but also not the “run of the banks” Aston is screaming about as bank deposits would still be insured.
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The regulations the FDIC enforces are what keeps banks from making reckless moves that would cause a bank not to have money issues where they can't cover all their bank deposits. Get rid of the FDIC and most bank executives will do it to keep their job. But there will be a few more reckless moves made to cover for mistakes they have made, and there will be more runs on banks when this is discovered. So yes there will be more runs on banks, and if the government still covers it, then the taxpayer will be responsible for it.
The FDIC is one of three federal organizations which regulated US banks The others being the Office of the Comptroller and Federal Reserve. There are also state banking regulators I’m not advocating eliminating oversight and measures such as the Federal Reserve stress test. I’m also not panicking over the thought of consolidating the regulatory task into one agency whose sole function is banking regulations. Without specific details of the actual regulations (if any) will be eliminated any predictions of mass bank failures is premature.
I'll give you that, but I don't see Trump, or Ramaswamy as being to concerned about listening to long reports on how to consolidate banking regulations carefully with attention to details. I see them as making grand moves with no attention to very important details. Musk, with him I don't know., he seems a little wreckless, but I can't imagine him being in the industries he is in, without a sense of what needs to be understood related to important small details. But he wants to deregulate everything. Who knows the risks he takes without regulation. He makes me nervous as well. I'm afraid of both of them being in charge of deregulation of any industry, banking included. I can see them missing what they see as unimportant issues and making what they think are cost saving changes that leav the system open to problems and abuse for the user.(taxpayer)
The irony is that it really doesn’t save you much if any money and just creates more risk. Even if you move the FDIC’s functions somewhere else, you still have to add additional staff to whatever entity you move it to. The only real reason to consolidate is so Trump and his wealthy buddies can get deregulation which inherently does make bank runs or other market implications more real.
What they’re trying to do is play corporate strategy games with centralization on the government functions and policy to reduce admin burden but for those of us who have actually been part of these efforts at business it is clear that it’s not all sunshine and rainbows.
What they’re trying to do is play corporate strategy games with centralization on the government functions and policy to reduce admin burden but for those of us who have actually been part of these efforts at business it is clear that it’s not all sunshine and rainbows.
Besides, one or two bank runs eliminates the savings, and all it accomplishes is hurting the taxpayer so they can profit from deregulation.(Elon, Trump, etc.)
All I’ve read is the idea of consolidating the FDIC, Federal Reserve and Comprroller into one regulatory agency. Something which makes sense from a banking and reporting perspective. What specific deregulations are you guys seeing which are going to trigger these bank runs? Same question regarding Elon’s purpose here is to enrich himself?
How willingly naive can you be?
You really think that Musk loves the country, that he’s not even from, so much that he’s doing all of this for altruistic purposes?
Cui bono?
All they are speaking in is generalities. That's all they hope to do when they do it. Are you naive enough to think that they won't get rid of any regulations, and 'just save money'' through consolidation of organizations. The savings from that would be so minimal that it's not even worth doing. They will get rid of the regulations they think hinder them. This is a self serving move. We can discuss this when they have done damage.
When have you known me to be naive. I’m not the one who:
- believed if we had more tests we could eliminate covid
- believe cloth masks were an effective measure to prevent the spread of Covid
- believed a vaccine which did little to nothing to prevent or even slow the spread of a disease should be required in order to earn a living
- believe the infusion of a trillion dollars into an economic system already deficient of goods and services wouldn’t have an inflationary effect
- believe inflation we were experiencing was transitory
- believe letting millions and millions of immigrants (including children) into the country without the necessary assets to house and track them was good policy.
Not saying you specifically were naive enough to buy into all the above BS but many on this board were.
I do believe consolidation would be beneficial to the industry. Many of the reports banks are required to file are redundant. This is especially onerous on smaller banks. There is zero reason for the requirement to complete what are basically the same disclosures for multiple regulatory agencies. We screaming about bank runs without knowing a single regulation which is sought to be eliminated. Are we talking about reducing redundant reporting requirements or are we talking about reducing capitalization and significantly changing the parameters of things like the stress test ? Until we know specifics like these it’s impossible to discuss the potential negative effects (if any). Yet…here we are speculating about runs on banks.
I obviously have a significant number of clients who are bankers. Most don’t want to lower the capitalization requirements. The all want less filings. Less duplicate reporting. Basically they prefer a more streamline reporting process to one agency.
Looking forward to seeing the actual proposal.
I didn't believe any of that. The only thing I believed was that keeping people on the vaccine helped keep people out of hospitals(beneficial for the patient & the taxed hospital system) & sick for less time.(allowed them to get back to work quicker) This warranted making people take it in order to come to work for the federal government during the emergency. Trump was more responsible for injecting that Trillion into the economy, even though the Democrats would have done it as well. So no party can claim lack of responsibility for that. I also think it was necessary for the time being, and if all we had to deal with in the after effects of Covid was two years of high inflation, with no recession yet, then we got off lucky.
But all of this has nothing to do with what we were talking about, and is just diversionary. It deflects one from talking about whether they believe Ramaswamy/Elon/Trump want to do things to reduce regulations not just reduce repetitive paperwork and waste by consolidating organisations. If they can't profit from it, then they aren't interested. What they can get away with is the only thing on their mind. I hope they won't get away with much, but I worry there won't be any backstops until catastrophe strikes, and it is made evident what they did to the general public. Trump doesn't have much to fear from his party at this point, and that is the only politicians that can do anything to stop catastrophe's like this. All we can do is get out the popcorn.
Agree. My hope is that the focus will be on the elimination of redundancy. I don’t believe Elon’s purpose here (at least in banking reform) is his own personal wealth. The other two mentioned I might agree. Let’s discuss more in depth when the actual proposals come out. I’ve lived through things like 125%’to value loans as well as stated income lending. Neither turned out well in the end
I don't think Musk's goal's with money are to have more of it, so he can buy more things. It is so that he can swing more business deals. fund more projects. He is goal oriented and has a large ego that drags him to the next deal/task. That doesn't stop him from changing the regulations, just what he does with the increased money he has access to, when he changes them for this purpose. His reasons for wanting more money don't affect how it affects the public.
With a net worth of over $400B, I can’t imagine there’s a significant need for new ways to access capital for new business ventures. Musk has borrowed against his Tesla and SpaceX holdings for years. His net worth has more than doubled over the past year vastly increasing his ability to raise additional capital
Elon, as far as I know, doesn't have an interest in eliminating the FDIC. He thinks there is duplicative regulatory issues. He loves to just destroy things and just see what happens afterwards. He didn't have to live with that burden at Twitter and he lost lots and lots of clients.
Tesla has had issues with getting insurance going. But that is an function of them not understanding acturial science.
Eliminating fdic insurance will only push more favouritism towards big banks.
The banks, insurance companies and exchanges love to bitch about regulators but there have been some spectulor failures in the last few decades from Merril Lynch, Wachovia, AIG, Washington Mutual, First Republic, lehman to SVB and FTX. Some of what occurs in that industry is likely excessive others isn't and rightfully so. At the end of the day, usually compliance has made the industry better for the public, not worse.
The crypto guys don't believe they should be regulated at all and it is a total joke. They want to market themselves as securities as investments but not be regulated like them. Then new ones pop up left and right like $HAWK and people lose spectacularly on them. NFTs were the new hotness for a while until everyone realized what a frighin scam they were
Tesla has had issues with getting insurance going. But that is an function of them not understanding acturial science.
Eliminating fdic insurance will only push more favouritism towards big banks.
The banks, insurance companies and exchanges love to bitch about regulators but there have been some spectulor failures in the last few decades from Merril Lynch, Wachovia, AIG, Washington Mutual, First Republic, lehman to SVB and FTX. Some of what occurs in that industry is likely excessive others isn't and rightfully so. At the end of the day, usually compliance has made the industry better for the public, not worse.
The crypto guys don't believe they should be regulated at all and it is a total joke. They want to market themselves as securities as investments but not be regulated like them. Then new ones pop up left and right like $HAWK and people lose spectacularly on them. NFTs were the new hotness for a while until everyone realized what a frighin scam they were
I can't speak for the Crypto guys in general. Most seem sketchy. But I'm sympathetic for Sam Bankman Fried's long imprisonment as he was trying to get Crypto regulated to expand FTX's reach. VC's and other supposedly sophisticated investors were throwing money at him, doing zero due diligence (no one cared that he didn't have a CFO?). FTX was a very profitable business and growing like a weed. But.... when there was a run on the bank, they treated FTX as if it was regulated entity like Morgan Guaranty or Citibank. In the end all the FTX investors are getting their money back plus interest despite the so called 'expert' caretakers claiming it was a total bust. Trump's investors and customers have repeatedly done far worse. But as I said, that's one example and the crypto area is one that I personally avoid.
Agree Which is why he is serving 25 years in prison. His investors are extremely lucky the crypto market has exploded in value over the past year which has allowed them to recoup their investments even though it’s not nearly the return they would have received without the misappropriation of their money.
