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I think there was an air of "hey, it's been ten years since 2008, the system is working; we can relax Dodd-Frank a little bit."

After March 2023, the message should be an unequivocal "no, not even a little bit."




How did the relaxation of Dodd-Frank lead to what happened at SVB?


From what I understand there use to be a stress test. I.E. government employees would hypothetically withdraw a lot of deposits and see what would happen. The threshold for the test was recently changed from 50 billion to 250 billion AUM, so SVB no longer met the threshold and didn't have to do the stress test. I have heard the stress test would have caught this.


Dodd Frank != stress testing and nobody was ever stress testing regional banks. Maybe they should start now given that depending on the region bank failure can have national security consequences


From my experience at a regional/super-regional bank, CECL and CCAR were absolutely happening in banks around the 200b mark.


It should not have taken a stress test for the FRBSF or CA State Examiners to see the high risk to solvency a run would create for SVB given the size and state of their HTM portfolio.


Possibly, but Dodd-Frank wouldn't have prevented what happened at SVB.


Wouldn’t SVB have to go through the rigors of the stress tests mandated by Dodd-Frank?


What makes you think the regulators wouldn't have given SVB a passing grade?


You mean besides the fact that FDIC just took them over?


No more polio! We can stop getting polio vaccines!


[flagged]


Seatbelts and airbags are a leading cause of auto accident injuries. They need to go.

(I know you’re saying that tongue-in-cheek. I’m just being a stinker)


Most cases of Polio are actually caused by vaccines - it's not a case of confusing cause and effect: https://en.wikipedia.org/wiki/Polio#Epidemiology

This is only the case because the vaccine has been so effective that the disease is close to being infected, and a vaccine-caused case is much less severe than a wild case, but they're still looking into a different vaccine type that will lower the risk of vaccine-caused infections.


Hence the comment about seatbelts.



That article says nothing about the relative risk of no oral polio administration vs. the small number of people who can get polio from it. The level of death pre oral polio vaccine vs after is clear.

The article is simply pointing out that it would be better if everyone could get the vaccine without live virus because the live virus oral version is beginning to have some unintended issues. The use of oral polio vaccines has saved huge numbers of lives but it needs to be modified now. It is not speaking against vaccines in general.


I wonder if not using the vaccine would result in more or fewer total cases over a period of time.

(None of which is to say we shouldn’t always try to design safer seatbelts and airbags)




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