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Wokies SocComs and LGBTs,
berating each other and imploding the USA...
Warren ♥ Dimon, hates Hayek Austrian Hazlitt etc


Liz Warren Makes War On Powell, And How 'Woke' SF Fed Chief Failed On SVB

Senator Elizabeth Warren (D-MA) says Federal Reserve Chair Jerome
Powell has racked up "an astonishing list of failures," which
contributed to the implosion of Silicon Valley Bank and Signature
Bank, Bloomberg reports.

"SVB and Signature accumulated risk and made dangerous decisions about
how to manage that risk," said Warren in a Wednesday letter to Powell.
"They did so in part because of greed and incompetence – but were
allowed to do so under faulty supervision and in a weakened regulatory
environment that you helped to create."

"You owe the public an explanation," Warren continued, demanding that
Powell respond to 11 questions by March 29.

    This is the biggest disaster in recent Fed history. Four days ago,
Powell was saying he could hike 50bps.

    Powell has to be fired immediately
    — zerohedge (@zerohedge) March 12, 2023

Warren's letter outlines several efforts to weaken regulations that
were implemented following the 2008 financial crisis, which was
enabled by lax supervision by the Fed.

Warren also demanded that Powell recuse himself from an internal
investigation by the Fed into regulatory failures concerning SVB - the
results of which will be made public by Vice Chair Michael Barr by May
1. Instead, a bipartisan group of lawmakers wants an independent
investigation.

    The Fed and other regulators announced emergency measures to help
contain the budding crisis, including a new loan program from the
central bank that will make is easier for banks to borrow to meet
deposit withdrawal demand.

    In her letter, Warren also said Powell supported a 2018 law that
exempted mid-sized banks like SVB from the same stringent oversight
requirements faced by the biggest banks, a change that she and some
other progressives have said contributed to SVB’s demise. Testifying
about the bill at the time, Powell said the Fed would still have the
ability to regulate mid-size banks if warranted, and that gave them
“the tools that we need.” -Bloomberg

"Make no mistake: your decisions aided and abetted this bank failure,
and you bear your share of responsibility for it," wrote Warren.

Meanwhile, woke 'Frisco Fed' chief Mary Daly has also come under fire.
As Paul Sperry writes in the NY Post: "Wokeness has replaced
competence and merit across the banking sector, and San Francisco Fed
Chief Mary Daly is the poster child of this pernicious trend."

    A protege of Treasury Secretary Janet Yellen and short-list
candidate for Federal Reserve vice chair, Daly was supposed to be
supervising Silicon Valley Bank but apparently was too busy playing
politics and pushing woke agendas to regulate rogue banks like SVB,
the second-biggest bank failure on record.

    Daly had other priorities, including climate change, George Floyd
and Black Lives Matter, inequities between blacks and whites, LGBTQ+
rights and a host of other woke social-justice issues that had nothing
to do with banking and finance. -NY Post

According to Daly's bio, her commitments include "understanding the
economic and financial risks of climate change and inequities."

Sperry highlights a recent LinkedIn post from Daly, in which she
appears 'sidetracked' by racial justice, writing "What Black voices
have I lifted up? Equity & inclusion begins with me. #GeorgeFloyd."

And while Daly has been focused on everything but banking, she was
completely oblivious to the warning signs of inflation.

Two years ago, as inflation was spiraling out of control, she said: "I
am not thinking that we have unwanted inflation around the corner. I
don’t think that’s a risk."

Last year, she denied that the economy was suffering from horrific
inflation, saying "That's not what I see."

And in August, Daly - who makes $422,000 per year, said "I don’t feel
the pain of inflation anymore."

"I’m not immune to gas prices rising, food prices rising," she
continued, adding "But I don’t find myself in a space where I have to
make trade-offs, because I have enough, and many, many Americans have
enough."

    From her policy papers, speeches and interviews, it’s clear that
Daly thinks the Fed’s core mission isn’t controlling inflation but
achieving full employment — and raising interest rates just hurts that
goal. Her agenda is more jobs and higher wages for minorities, so
sound money is not a priority for her — even though inflation is a
huge tax on the working class and especially minorities.

    Until recently, Daly was opposed to the Fed’s hawkish shift to
tightening credit to fight inflation. Her bank examiners no doubt
shared her dovish mindset and didn’t anticipate rates increasing,
which may also explain why alarms weren’t raised at SVB. -NY Post

Sperry also notes that Daly has zero experience in banking or managing
risk. According to her, Treasury Secretary Janet Yellen has been an
"important mentor in my life . . . [S]he made my career kind of
explode."

And now banks under her watch are, 'kind of imploding.'