• Too Good to Be True!!

    From Art Sackman@21:1/5 to All on Mon Mar 13 08:50:51 2023
    Another bank failed today,
    Signature Bank out if New York.
    About $100 billion in assets.

    Barney Frank, of Dodd-Frank fame, was one of its directors.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From mINE109@21:1/5 to Art Sackman on Mon Mar 13 12:23:18 2023
    On 3/13/23 10:50 AM, Art Sackman wrote:
    Another bank failed today,
    Signature Bank out if New York.
    About $100 billion in assets.

    Barney Frank, of Dodd-Frank fame, was one of its directors.

    I see he blames crypto. He was long-retired when the Crapo Bill passed.

    https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/s2155.pdf

    "Under the bill, the new leverage ratio would not account for the
    riskiness of the assets held by community banks. Thus, institutions
    could hold assets with a greater risk profile than they do now without
    having to hold any additional capital. Assets with a higher risk profile
    tend to provide higher returns. As a result, community banks that meet
    the new leverage ratio could have a somewhat riskier portfolio of assets
    and would probably impose higher costs on the DIF when they fail than
    expected under current regulations. Because a majority of community
    banks already exceed a 10 percent leverage ratio and because many of
    them offer banking services to specific geographic or industry sectors,
    CBO estimates that most of them would not make significant changes to
    their management or business practices. However, some banks would
    probably change their behavior and thus CBO expects that, taken as a
    whole, there would be a small increase in the risk profile of community
    banks."

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From ScottW@21:1/5 to Art Sackman on Mon Mar 13 10:25:52 2023
    On Monday, March 13, 2023 at 8:50:52 AM UTC-7, Art Sackman wrote:
    Another bank failed today,
    Signature Bank out if New York.
    About $100 billion in assets.

    Barney Frank, of Dodd-Frank fame, was one of its directors.

    The other twist, too much of these banks reserves were long term US Treasury Bonds.

    ScottW

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Art Sackman@21:1/5 to All on Mon Mar 13 14:21:40 2023
    On Monday, March 13, 2023 at 1:23:20 PM UTC-4, mINE109 wrote:
    On 3/13/23 10:50 AM, Art Sackman wrote:
    Another bank failed today,
    Signature Bank out if New York.
    About $100 billion in assets.

    Barney Frank, of Dodd-Frank fame, was one of its directors.
    I see he blames crypto. He was long-retired when the Crapo Bill passed.

    https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/s2155.pdf

    "Under the bill, the new leverage ratio would not account for the
    riskiness of the assets held by community banks. Thus, institutions
    could hold assets with a greater risk profile than they do now without having to hold any additional capital. Assets with a higher risk profile tend to provide higher returns. As a result, community banks that meet
    the new leverage ratio could have a somewhat riskier portfolio of assets
    and would probably impose higher costs on the DIF when they fail than expected under current regulations. Because a majority of community
    banks already exceed a 10 percent leverage ratio and because many of
    them offer banking services to specific geographic or industry sectors,
    CBO estimates that most of them would not make significant changes to
    their management or business practices. However, some banks would
    probably change their behavior and thus CBO expects that, taken as a
    whole, there would be a small increase in the risk profile of community banks."


    You ignore that he was a director of the bank, and as such he had
    oversight and fiduciary responsibilities. He was not just an innocent bystander who had
    retired from Congress.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From mINE109@21:1/5 to Art Sackman on Mon Mar 13 16:55:12 2023
    On 3/13/23 4:21 PM, Art Sackman wrote:
    On Monday, March 13, 2023 at 1:23:20 PM UTC-4, mINE109 wrote:
    On 3/13/23 10:50 AM, Art Sackman wrote:
    Another bank failed today, Signature Bank out if New York. About
    $100 billion in assets.

    Barney Frank, of Dodd-Frank fame, was one of its directors.
    I see he blames crypto. He was long-retired when the Crapo Bill
    passed.

    https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/s2155.pdf


    "Under the bill, the new leverage ratio would not account for the
    riskiness of the assets held by community banks. Thus,
    institutions could hold assets with a greater risk profile than
    they do now without having to hold any additional capital. Assets
    with a higher risk profile tend to provide higher returns. As a
    result, community banks that meet the new leverage ratio could have
    a somewhat riskier portfolio of assets and would probably impose
    higher costs on the DIF when they fail than expected under current
    regulations. Because a majority of community banks already exceed a
    10 percent leverage ratio and because many of them offer banking
    services to specific geographic or industry sectors, CBO estimates
    that most of them would not make significant changes to their
    management or business practices. However, some banks would
    probably change their behavior and thus CBO expects that, taken as
    a whole, there would be a small increase in the risk profile of
    community banks."


    You ignore that he was a director of the bank,

    Why do you make such inane accusations? I responded directly to the
    statement he was "one of its directors."

    and as such he had oversight and fiduciary responsibilities. He was
    not just an innocent bystander who had retired from Congress.

    No, not "just an innocent bystander who had retired from Congress."

    https://careertrend.com/list-5954250-duties-responsibilities-board-directors-bank.html

    "While the board of directors does not manage the bank, one of its
    foremost duties is to pick the people who will. The board must select
    and appoint the bank's top executive officers...

    The board of directors not only helps lay out the bank's goals, but acts
    as a watchdog as well. One of its main duties in this capacity is to
    limit the bank's exposure to excessive risk of all kinds, including
    legal, reputational and financial. By managing risk judiciously, the
    board tries to maintain a balance between enterprise and caution."

    Hence the criticism Frank is receiving.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Art Sackman@21:1/5 to All on Mon Mar 13 15:36:45 2023
    On Monday, March 13, 2023 at 5:55:15 PM UTC-4, mINE109 wrote:
    On 3/13/23 4:21 PM, Art Sackman wrote:
    On Monday, March 13, 2023 at 1:23:20 PM UTC-4, mINE109 wrote:
    On 3/13/23 10:50 AM, Art Sackman wrote:
    Another bank failed today, Signature Bank out if New York. About
    $100 billion in assets.

    Barney Frank, of Dodd-Frank fame, was one of its directors.
    I see he blames crypto. He was long-retired when the Crapo Bill
    passed.

    https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/s2155.pdf


    "Under the bill, the new leverage ratio would not account for the
    riskiness of the assets held by community banks. Thus,
    institutions could hold assets with a greater risk profile than
    they do now without having to hold any additional capital. Assets
    with a higher risk profile tend to provide higher returns. As a
    result, community banks that meet the new leverage ratio could have
    a somewhat riskier portfolio of assets and would probably impose
    higher costs on the DIF when they fail than expected under current
    regulations. Because a majority of community banks already exceed a
    10 percent leverage ratio and because many of them offer banking
    services to specific geographic or industry sectors, CBO estimates
    that most of them would not make significant changes to their
    management or business practices. However, some banks would
    probably change their behavior and thus CBO expects that, taken as
    a whole, there would be a small increase in the risk profile of
    community banks."


    You ignore that he was a director of the bank,
    Why do you make such inane accusations? I responded directly to the statement he was "one of its directors."
    and as such he had oversight and fiduciary responsibilities. He was
    not just an innocent bystander who had retired from Congress.
    No, not "just an innocent bystander who had retired from Congress."

    https://careertrend.com/list-5954250-duties-responsibilities-board-directors-bank.html

    "While the board of directors does not manage the bank, one of its
    foremost duties is to pick the people who will. The board must select
    and appoint the bank's top executive officers...

    The board of directors not only helps lay out the bank's goals, but acts
    as a watchdog as well. One of its main duties in this capacity is to
    limit the bank's exposure to excessive risk of all kinds, including
    legal, reputational and financial. By managing risk judiciously, the
    board tries to maintain a balance between enterprise and caution."

    Hence the criticism Frank is receiving.

    Barney the watchdog doesn't have any bark.
    his eyesight, hearing, and smell are gone.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)