Bitcoin News and Finance
While Biden and Trump Blame Each Other for Bank Failures, Others Believe the Cause Might Be a Management Issue Skip to main content

While Biden and Trump Blame Each Other for Bank Failures, Others Believe the Cause Might Be a Management Issue

biden trump banking failures

The recent banking failures involving the fall of Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank, have high-profile government individuals trying to find a culprit. U.S. President Joe Biden and former President Donald Trump have publicly blamed each other’s policies for the outcome, but according to some analysts, the problem might be ignorance in the banking system.

Biden and Trump Scuffle on Bank Failures’ Causes

The recent banking crisis that the U.S. is currently facing after the fall of three medium-size banks (Silicon Valley Bank, Signature Bank, and Silvergate Bank), has spurred a political discussion between U.S. President Joe Biden and former President Donald Trump in order to find the responsible of the biggest bank failures since the 2008 subprime mortgage crisis.

Biden and Trump have been very vocal assigning the blame to each the other’s policies. On March 13, in the wake of the fall of Silicon Valley Bank, Biden reassured people about the isolated character of the incident, calling on Americans to trust in the banking system, and saying it was safe.

At the same time, President Biden assigned the blame for the bank failures on the deregulation advances that occurred under Trump’s administration, in which the stricter banking regulations established via the Dodd-Frank Act during former President Obama’s mandate were struck down. Biden stated:

Unfortunately, the last administration rolled back regulations.

Trump was quick to rebuff these allegations, making it clear he considers the current administration responsible for the current shaky standing of the banking system. As part of a speech given on March 28, Trump stated:

We are seeing bank failures left and right. Biden and his enablers and Congress are directly responsible for creating this economic catastrophe. And with Joe Biden at the wheel, it will only get worse. That’s what’s happening in almost every single sector.

A Different Answer

However, for some analysts, the blame lies in problems that could have easily been handled by assessing the risk of, for example, Silicon Valley Bank. This is the opinion of Andre Esteves, the millionaire CEO and founder of BTG Pactual, one of the biggest investment banks in Latam, managing over $70 billion in assets.

For Esteves, it was the lack of expertise of banking operators resulting from years of low-interest rates which caused the debacle at Silicon Valley Bank. Esteves explained that the current generation of operators only knows inflation and hawkish policies by book, or in theory, and doesn’t know how to deal with them in practice.

Esteves declared:

It’s very basic asset liability management that any junior analyst working at a bank in Chile, Brazil or Colombia or any other country that presents a little more volatility would know.

Esteves also singled out Credit Suisse’s fall as an isolated event that had been gestating for years.

What do you think about the responsibilities of Biden, Trump, and banking operators for the current banking crisis? Tell us in the comment section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory