The legislation I'm signing today rolls back the crippling Dodd-Frank regulations that are crushing community banks and credit unions nationwide. One of the things we're finding now about Silicon Valley Bank is that in 2018, the CEO of that bank said, well, we shouldn't be regulated in the same way as the big banks. They were chasing possibly slightly greater yields because if you bought long-term, fixed rate government bonds when interest rates are really low, you might get a few points more. But it was still a really bizarre thing to do. And there is something rather odd about a place where he think all the action was at the other end of Silicon Valley Bank then suddenly they get swamped
A lot has been said about the collapse of Silicon Valley Bank and Credit Suisse. But one important thing revealed by those closely scrutinized failures has largely gone unnoticed: the changing relationship between governments and banks.
Bloomberg Editor-In-Chief John Micklethwait joins this episode to talk about how the idea that finance is an arm of the state is back–and why that will have far-reaching consequences for the way the world works.
Listen to The Big Take podcast every weekday and subscribe to our daily newsletter: https://bloom.bg/3F3EJAK
Have questions or comments for Wes and the team? Reach us at bigtake@bloomberg.net.
See omnystudio.com/listener for privacy information.