You Can't Bank On It

So, here's what happened with Silicon Valley Bank:

After a Republican Congress with centrist Democratic support weakened the Dodd-Frank Act in 2018 - two years after Trump defeated a Democrat who said we didn't need to restore the Glass-Steagall Act that had separated commercial and investment banking - Silicon Valley Bank made more investments in Treasury securities to prop up its customers' accounts. 

Then, in 2020, COVID hit, and Silicon Valley Bank kept on keeping on, but when more money was pumped into the economy in 2021 to get the United States out of the pandemic recession, inflation resulted.

Silicon Valley Bank, which had been playing fast and loose with its assets, suddenly found itself having to cover its customers' money by selling its Treasury securities at a discount.  This, in turn, led to the second-largest bank failure in history. 

Although some Republicans blame the bank's failure for investing in ventures based on diversity, environmental concerns, equity, and inclusion.

 The Federal Deposit Insurance Corporation will be able to cover accounts with money in an insurance fund paid into by . . . banks.  

And Dodd-Frank likely won't be re-strengthened, and Glass-Steagall likely still won't be restored.

Oh a side note, the Mormons managing Zion Bancorporation in Utah have been put on notice that their banking practices are under government scrutiny.   

So much for tithing.

What happened to their morals?