LISTEN LIVE
WATCH LIVE
WTMJ
Tuesday, May 13, 2025
57 °f
Milwaukee
58 ° Wed
58.9 ° Thu
  • Home
  • News
    • All
    • Breaking News
    • Business
    • Crime
    • Decision Wisconsin
    • Education
    • Entertainment
    • Environment
    • Featured Stories
    • Government and Politics
    • Health
    • National
    • News Features
    • Wisconsin

    Teaming up with Brewers Community Foundation to help the Wisconsin Humane Society

    UPDATE: Pleading “not guilty” to child sexual assault in Fond du Lac County

    Fond du Lac woman pleads guilty to sex trafficking her 12-year-old daughter

    Over $500,000 donated to Milwaukee Public Schools from local organizations

    Fire Chief Aaron Lipski outside the house where a firefighter fell through the floor at 29th and Scott

    “I’ve never seen this in my life” Milwaukee Fire Chief, Aaron Lipski explains deadly blaze

    “He eventually was broken”: New information on nearly 38-hour Fredonia armed standoff

    “He eventually was broken”: New information on nearly 38-hour Fredonia armed standoff

    UPDATE: 5 dead, 3 in critical condition in Milwaukee apartment fire

  • Weather
    • Closings and Delays
    • Flight Status
    • Interactive Radar
    • Watches and Warnings
  • Traffic
    • Driver’s Ed with Debbie
  • Sports
    • Milwaukee Brewers
      • Brewers All Access Podcast
    • Milwaukee Bucks
      • Bucks in 6 Minutes
      • Bucks Talk
      • Bucks Weekly: The Podcast
    • Green Bay Packers
      • Green & Gold Insiders Podcast
    • NCAA
  • On-Air
    • Wisconsin’s Morning News
      • Everyday Hero
    • Point Taken with Steve Scaffidi & Kristin Brey
      • Best of the Hawaiian Islands with Steve Scaffidi & Fox World Travel
      • Steve Scaffidi’s Salute to Service presented by WaterStone Bank
    • The Upswing
    • Wisconsin’s Midday News
    • Wisconsin’s Afternoon News
      • America’s Music Cities Holiday with John Mercure & Collette
      • Kingdoms of Southeast Asia with John Mercure & Collette
    • What’s On Tap
      • Germany, Austria, & Czech Republic – Beer & Brewery Tour with Sandy Maxx & Journeys Connect
    • Wisconsin’s Weekend Morning News
    • The Truth: Unfiltered
    • WTMJ Conversations
    • The Mid-West Farm Report
  • Podcasts

    Wisconsin’s Morning News Podcast

    You Need To Listen Podcast

    You Need To Listen Podcast

    Brewers All Access Podcast

    WTMJ Conversations Podcast

    Point Taken with Steve Scaffidi & Kristin Brey

    Wisconsin’s Afternoon News Podcast

    Bucks Talk: The Podcast

    Bucks+ Audio Podcast

    Bucks+ Audio Podcast

    The Upswing

    What’s On Tap Podcast

    Scaffidiology Podcast

    The Truth: Unfiltered

    The Truth: Unfiltered

    Wisconsin’s Midday News Podcast

    Wisconsin’s Weekend Morning News Podcast

    Wisconsin’s Weekend Morning News Podcast

    Bucks Central Podcast

    Bucks Central Podcast

    • Wisconsin’s Morning News Podcast
    • Point Taken Podcast
    • The Upswing Podcast
    • Wisconsin’s Midday News Podcast
    • Wisconsin’s Afternoon News Podcast
    • Daily Download
    • What’s On Tap Podcast
    • Wisconsin’s Weekend Morning News Podcast
    • Decision Wisconsin Podcast
    • The Mid-West Farm Report Podcast
    • Featured Show Podcasts
      • The Accunet Mortgage and Realty Show Podcast
      • Drake & Associates Retirement Ready Podcast
      • Experience Wisconsin Podcast
      • The Fix-It Show Podcast
      • The Fox World Travel Show Podcast
      • Money Talk, The Annex Wealth Management Show Podcast
    • Brewers All Access Podcast
    • Milwaukee Bucks
      • Bucks in 6 Minutes
      • Bucks Weekly: The Podcast
      • Bucks Talk: The Podcast
    • Scaffidiology Podcast
    • WTMJ Conversations Podcast
    • WTMJ Extras Podcast
    • The Truth Unfiltered: The Podcast
    • Green & Gold Insiders Podcast
  • Specialty Shows
    • Experience Wisconsin
    • Fix It Show
    • Hired! The GKB Recruitment Show
    • Home Improvement Showcase
    • Sunday Sip
  • Partners
    • Events
      • Annex Wealth Management Webinar
      • Summerfest
      • Wisconsin State Fair
    • Features
      • Every Day Health
      • Experience Wisconsin
      • Steve Scaffidi’s Salute to Service presented by WaterStone Bank
      • The Knowledge Brokers from R&R Insurance
      • Travel Wisconsin
    • Shows
      • Accunet Mortgage & Realty Show
      • Drake & Associates Retirement Ready Show
      • Fox World Travel Show
        • Best of the Hawaiian Islands with Steve Scaffidi & Fox World Travel
      • Joshing Around Milwaukee Podcast
      • Money Talk, The Annex Wealth Management Show
      • What’s the Difference? with Gina Della
  • About
    • Schedule
    • Bios
    • Contests
    • History & Timeline
    • Advertise
    • Careers
    • Contact
No Result
View All Result
WTMJ
  • Home
  • News
    • All
    • Breaking News
    • Business
    • Crime
    • Decision Wisconsin
    • Education
    • Entertainment
    • Environment
    • Featured Stories
    • Government and Politics
    • Health
    • National
    • News Features
    • Wisconsin

    Teaming up with Brewers Community Foundation to help the Wisconsin Humane Society

    UPDATE: Pleading “not guilty” to child sexual assault in Fond du Lac County

    Fond du Lac woman pleads guilty to sex trafficking her 12-year-old daughter

    Over $500,000 donated to Milwaukee Public Schools from local organizations

    Fire Chief Aaron Lipski outside the house where a firefighter fell through the floor at 29th and Scott

    “I’ve never seen this in my life” Milwaukee Fire Chief, Aaron Lipski explains deadly blaze

    “He eventually was broken”: New information on nearly 38-hour Fredonia armed standoff

    “He eventually was broken”: New information on nearly 38-hour Fredonia armed standoff

    UPDATE: 5 dead, 3 in critical condition in Milwaukee apartment fire

  • Weather
    • Closings and Delays
    • Flight Status
    • Interactive Radar
    • Watches and Warnings
  • Traffic
    • Driver’s Ed with Debbie
  • Sports
    • Milwaukee Brewers
      • Brewers All Access Podcast
    • Milwaukee Bucks
      • Bucks in 6 Minutes
      • Bucks Talk
      • Bucks Weekly: The Podcast
    • Green Bay Packers
      • Green & Gold Insiders Podcast
    • NCAA
  • On-Air
    • Wisconsin’s Morning News
      • Everyday Hero
    • Point Taken with Steve Scaffidi & Kristin Brey
      • Best of the Hawaiian Islands with Steve Scaffidi & Fox World Travel
      • Steve Scaffidi’s Salute to Service presented by WaterStone Bank
    • The Upswing
    • Wisconsin’s Midday News
    • Wisconsin’s Afternoon News
      • America’s Music Cities Holiday with John Mercure & Collette
      • Kingdoms of Southeast Asia with John Mercure & Collette
    • What’s On Tap
      • Germany, Austria, & Czech Republic – Beer & Brewery Tour with Sandy Maxx & Journeys Connect
    • Wisconsin’s Weekend Morning News
    • The Truth: Unfiltered
    • WTMJ Conversations
    • The Mid-West Farm Report
  • Podcasts

    Wisconsin’s Morning News Podcast

    You Need To Listen Podcast

    You Need To Listen Podcast

    Brewers All Access Podcast

    WTMJ Conversations Podcast

    Point Taken with Steve Scaffidi & Kristin Brey

    Wisconsin’s Afternoon News Podcast

    Bucks Talk: The Podcast

    Bucks+ Audio Podcast

    Bucks+ Audio Podcast

    The Upswing

    What’s On Tap Podcast

    Scaffidiology Podcast

    The Truth: Unfiltered

    The Truth: Unfiltered

    Wisconsin’s Midday News Podcast

    Wisconsin’s Weekend Morning News Podcast

    Wisconsin’s Weekend Morning News Podcast

    Bucks Central Podcast

    Bucks Central Podcast

    • Wisconsin’s Morning News Podcast
    • Point Taken Podcast
    • The Upswing Podcast
    • Wisconsin’s Midday News Podcast
    • Wisconsin’s Afternoon News Podcast
    • Daily Download
    • What’s On Tap Podcast
    • Wisconsin’s Weekend Morning News Podcast
    • Decision Wisconsin Podcast
    • The Mid-West Farm Report Podcast
    • Featured Show Podcasts
      • The Accunet Mortgage and Realty Show Podcast
      • Drake & Associates Retirement Ready Podcast
      • Experience Wisconsin Podcast
      • The Fix-It Show Podcast
      • The Fox World Travel Show Podcast
      • Money Talk, The Annex Wealth Management Show Podcast
    • Brewers All Access Podcast
    • Milwaukee Bucks
      • Bucks in 6 Minutes
      • Bucks Weekly: The Podcast
      • Bucks Talk: The Podcast
    • Scaffidiology Podcast
    • WTMJ Conversations Podcast
    • WTMJ Extras Podcast
    • The Truth Unfiltered: The Podcast
    • Green & Gold Insiders Podcast
  • Specialty Shows
    • Experience Wisconsin
    • Fix It Show
    • Hired! The GKB Recruitment Show
    • Home Improvement Showcase
    • Sunday Sip
  • Partners
    • Events
      • Annex Wealth Management Webinar
      • Summerfest
      • Wisconsin State Fair
    • Features
      • Every Day Health
      • Experience Wisconsin
      • Steve Scaffidi’s Salute to Service presented by WaterStone Bank
      • The Knowledge Brokers from R&R Insurance
      • Travel Wisconsin
    • Shows
      • Accunet Mortgage & Realty Show
      • Drake & Associates Retirement Ready Show
      • Fox World Travel Show
        • Best of the Hawaiian Islands with Steve Scaffidi & Fox World Travel
      • Joshing Around Milwaukee Podcast
      • Money Talk, The Annex Wealth Management Show
      • What’s the Difference? with Gina Della
  • About
    • Schedule
    • Bios
    • Contests
    • History & Timeline
    • Advertise
    • Careers
    • Contact
No Result
View All Result
WTMJ
No Result
View All Result

Banks looking for ideas to stop next bank failure

by AP News
March 18, 2023, 9:20 pm - Updated on March 21, 2023, 7:03 am
in News
Banks looking for ideas to stop next bank failure

WASHINGTON, DC - MARCH 13: A seal on the exterior of the U.S. Department of Treasury building is seen as they joined other government financial institutions to bail out Silicon Valley Bank's account holders after it collapsed on March 13, 2023 in Washington, DC. U.S. President Joe Biden tried to assure the public that the U.S. banking industry was safe following SVB's collapse and after New York regulators' forced closure of Signature Bank. (Photo by Chip Somodevilla/Getty Images)

WASHINGTON — The warning signs were all there. Silicon Valley Bank was expanding at a breakneck pace and pursuing wildly risky investments in the bond market. The vast majority of its deposits were uninsured by the federal government, leaving its customers exposed to a crisis.

None of this was a secret. Yet bank supervisors at the Federal Reserve Bank of San Francisco and the state of California did nothing as the bank rolled over the cliff.

“Their duty is to make sure that the bank is being run in a safe and sound manner and is not a threat,’’ said Dennis Kelleher, president of Better Markets, a nonprofit that advocates tougher financial regulations. “The great mystery here is why the supervision was AWOL at Silicon Valley Bank.’’

The search for causes and culprits — and solutions — is refocusing attention on a 2018 federal law that rolled back tough bank regulations put in place after the 2008-2009 financial crisis and, perhaps even more, on the way regulators wrote the rules that put that law in place.

The Silicon Valley Bank collapse — the second-biggest bank failure in U.S. history — is also raising difficult questions about whether the FDIC needs to offer more protection for deposits.

On March 10, regulators shuttered and seized the bank, based in Santa Clara, California. For months it had made a losing bet that interest rates would stay low. They rose instead — as the Federal Reserve repeatedly raised its benchmark rate to fight inflation — and the bank’s bond portfolio plunged in value. As its troubles became public, worried depositors started to withdraw their money in an old-fashioned bank run.

And over the weekend the federal government, determined to restore public confidence in the banking system, decided to protect all the bank’s deposits, even those that exceeded the FDIC’s $250,000 limit.

The demise of Silicon Valley Bank and of New York-based Signature Bank two days later has revived bad memories of the financial crisis that plunged the United States into the Great Recession of 2007-2009.

In the wake of that cataclysm, set off by reckless lending in the U.S. housing market, Congress passed the so-called Dodd-Frank law in 2010, tightening financial regulation. Dodd-Frank focused especially on “systemically important’’ institutions with assets of $50 billion or more — so big and interconnected with other banks that their collapse could bring the whole system down.

Those institutions had to maintain a bigger capital buffer against losses, keep more cash or other liquid assets on hand to handle a bank run, undergo annual “stress tests’’ from the Federal Reserve and write a “living will’’ to arrange for their affairs to be settled in an orderly manner if they fail.

But as the crisis faded into the past, and more and more banks grumbled about the burden of complying with the new rules, Congress decided to provide relief from the Dodd-Frank legislation. Among other things, it ditched the $50 billion asset threshold for the most stringent oversight, pushing it up to $250 billion. Many large lenders, including Silicon Valley Bank, were thereby freed from the tightest regulatory scrutiny.

Democratic Sen. Elizabeth Warren of Massachusetts, a leading critic of the banking industry, denounced the bill at the time, saying it would encourage banks to take more risk.

The law gave Federal Reserve officials the authority to reimpose tougher regulations on banks with assets between $100 billion and $250 billion if they felt it necessary.

But they chose not to be tough on those banks. For example, they required a stress test only every two years, not annually. So Silicon Valley Bank didn’t have to undergo a stress test in 2022 and wasn’t due for one until later this year.

Todd Phillips, a fellow at the left-leaning Roosevelt Institute and a former FDIC lawyer, said Congress’ deregulatory push during the Trump years created a “vibe shift.”

“It basically gave regulators permission to take their eyes off″ lenders like Silicon Valley Bank, he said. ”The regulators ran with that.’’

WASHINGTON, DC – MARCH 16: Senate Finance Committee member Sen. Ron Johnson (R-WI) questions U.S. Treasury Secretary Janet Yellen during a hearing about the Biden Administration’s FY2024 federal budget proposal before the committee in the Dirksen Senate Office Building on Capitol Hill on March 16, 2023 in Washington, DC. Yellen said the nation’s baking system is sound after the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation announced Sunday that depositors in Silicon Valley Bank in California and Signature Bank in New York will be repaid in full after both banks collapsed last week. (Photo by Chip Somodevilla/Getty Images)

Warren and other lawmakers on Tuesday introduced legislation to undo the 2018 law and restore the tougher Dodd-Frank regulations.

But Kelleher at Better Markets said that U.S. bank regulators “don’t have to wait for a divided Congress to act in the best interests of the American public.’’

They could rewrite 20 bank-friendly rules the Fed and other bank agencies put in place during the Trump years. For example, for banks with $100 billion or more in assets, Phillips wrote in a report Wednesday, regulators should reinstate annual stress tests and raise capital requirements, among other things.

“When we roll back regulations so that bank executives can use these banks to boost their profits, to boost their own salaries, to get big bonuses, they are doing it by taking on more risk,’’ Warren told reporters Wednesday. “Banking should be boring. And we have a chance here in Congress to make banking more boring again.’’

The sudden collapse of Silicon Valley Bank has also turned attention to federal deposit insurance.

The FDIC only covers up to $250,000. But Silicon Valley Bank, the go-to institution for tech entrepreneurs, held cash for many startups: 94% of its deposits — including money that companies need to meet their payrolls — were above the $250,000 threshold and vulnerable to losses when the bank failed.

The idea that so many depositors would lose their savings threatened to shake public faith in the banking system. So the Biden administration announced Sunday night that the FDIC would cover 100% of deposits at Silicon Valley Bank, and also at Signature Bank

Now some are calling for a permanent increase in the deposit insurance limit.

“I hope now going forward they’re not going to treat this increase in the guaranteed deposits as just a one-shot response … but make it ongoing,’’ said Barney Frank, former chair of the House Financial Services Committee and director of failed Signature Bank. He also suggested an increase for businesses so they can meet payrolls.

Previous Post

Trump believes he will be arrested Tuesday

Next Post

Silicon Valley Bank collapse concerns founders of color

AP News

AP News

Next Post
Reporter’s Notebook for 3/6/21

Silicon Valley Bank collapse concerns founders of color

Connect with WTMJ on Social Media!

More Top Headlines

Brewers Shut Out 5-0 in Cleveland, Freddy Peralta Picks Up 1000th Strikeout in Tough-Luck Loss

by AP News
Brewers Shut Out 5-0 in Cleveland, Freddy Peralta Picks Up 1000th Strikeout in Tough-Luck Loss

CLEVELAND (AP) — Gabriel Arias had a three-run double in the fourth inning, José Ramírez stole three bases and five...

Read moreDetails

Teaming up with Brewers Community Foundation to help the Wisconsin Humane Society

by WTMJ News

https://youtu.be/WSS2mq16drQ MILWAUKEE — 620 WTMJ is once again teaming up with the Brewers Community Foundation for their annual Pet Supplies...

Read moreDetails

Fond du Lac woman pleads guilty to sex trafficking her 12-year-old daughter

by WTMJ News
UPDATE: Pleading “not guilty” to child sexual assault in Fond du Lac County

FOND DU LAC, Wis. -- A woman was convicted of sex trafficking her 12-year-old daughter in Fond du Lac County...

Read moreDetails

Sign Up For WTMJ Insiders Below:

Loading

Weather Currents

Milwaukee, United States of America
Tuesday, May 13, 2025
Light rain
57 ° f
83%
10.8mh
67 f 52 f
Wed
73 f 50 f
Thu
WTMJ

© 2025 Good Karma Broadcasting.

Navigate Site

  • Careers
  • Contact
  • EEO PUBLIC FILE REPORT
  • FCC Public File
  • FCC Applications
  • Terms of Use
  • Privacy Policy

Follow Us

No Result
View All Result
  • LISTEN LIVE
  • WATCH LIVE
  • Home
  • News
    • News
    • Local News
  • Weather
    • Weather
    • Watches and Warnings
    • Closings and Delays
    • Flight Status
  • Traffic
  • Sports
    • Sports
    • Green Bay Packers
    • Milwaukee Brewers
    • Milwaukee Bucks
  • Shows
    • Shows
    • Wisconsin’s Morning News
    • Point Taken with Steve Scaffidi & Kristin Brey
      • Best of the Hawaiian Islands with Steve Scaffidi & Fox World Travel
      • Steve Scaffidi’s Salute to Service presented by WaterStone Bank
    • The Upswing
    • Wisconsin’s Midday News
    • Wisconsin’s Afternoon News
      • America’s Music Cities Holiday with John Mercure & Collette
      • Kingdoms of Southeast Asia with John Mercure & Collette
    • What’s On Tap
      • Germany, Austria, & Czech Republic – Beer & Brewery Tour with Sandy Maxx & Journeys Connect
    • Wisconsin’s Weekend Morning News
    • The Mid-West Farm Report
    • WTMJ Conversations
    • Featured Shows
      • Accunet Mortgage & Realty Show
      • Drake & Associates Retirement Ready Show
      • Every Day Health
      • Fix It Show
      • Hired! The GKB Recruitment Show
      • Money Talk, The Annex Wealth Management Show
  • Podcasts
  • Partners
    • Events
      • Annex Wealth Management Webinar
      • Summerfest
      • Wisconsin State Fair
    • Features
      • Every Day Health
      • Experience Wisconsin
      • Steve Scaffidi’s Salute to Service presented by WaterStone Bank
      • The Knowledge Brokers from R&R Insurance
      • Travel Wisconsin
    • Shows
      • Accunet Mortgage & Realty Show
      • Drake & Associates Retirement Ready Show
      • The Fox World Travel Show
      • Joshing Around Milwaukee Podcast
      • Money Talk, The Annex Wealth Management Show
      • What’s the Difference? with Gina Della
  • Features
    • Features
    • Good Karma Give Back
  • Contests
  • Alexa

© 2025 Good Karma Broadcasting.