Rebecca #Mangold will question Farro for prosecution. She’s been on the team several yrs, & typically sits w/Chris #Conroy, another prosecutor, behind the main table.
All I am saying is that if two small bank collapses (#SVB, #FirstRepublic, (1)) and a bigger one averted (#CreditSuisse (2)) on another continent can cause a ripple effect in the international banking system, the impact of a #SovereignDebt default by the world's leading economy would probably be comparable to the impact of a #meteor.(3)
The failure of #FirstRepublic is just the latest case where bank executives had every incentive to value short-term profits instead of risk management.
After SVB failed, the Fed promised a review and a public report on what went wrong. They released that report Friday, and it said SVB messed up but also put a surprising amount of blame on the Fed.
It sounds like these failures are mostly things the Fed can fix without Congress.
That doesn't excuse Congress' manufacturing of financial crises, especially the debt limit.
"The Federal Deposit Insurance Corporation said early Monday that First Republic Bank’s 84 branches in eight states will reopen as branches of JPMorgan Chase Bank and depositors will have full access to all of their deposits.