Small Lenders Beg DC to Not Accelerate DC’s Executing Them

Published April 11, 2023

Let’s be honest:

Silicon Valley Bank (SVB)’s demise was death by misadventure – an accidental suicide.  Too many Leftist cotillions – not enough risk management.

Silicon Valley Bank Had No Official Chief Risk Officer for 8 Months While the VC Market Was Spiraling

SVB’s idiotic Leftist business practices – left a lot of Leftist (billionaire) depositors wanting.  So the exceedingly awful Joe Biden Administration cranked up the cronyism.

Biden Admin’s Response to Silicon Valley Bank Collapse Is the ‘Greatest Form of Corporate Cronyism’

As Democrat Rahm Emanuel famously noted, Leftists never let a crisis go to waste.  Even – especially – when it’s not actually a crisis.  Or they have to create the crisis – to then not let it go to waste.

One bank self-immolating – is not a crisis.  So the government then did this.

Signature Bank Shut by Regulators, Noting Systemic Risk

One bank self-immolating – is not systemic risk. 

Regulators Seize Signature Bank

We should be outraged that the same bureaucrats who failed so utterly with one bank – immediately thereafter claimed some sort of prescient moral authority to preemptively seize another bank.

But we are not outraged.  Which is why the bureaucrats keep doing more and more obnoxious things.

Nothing emboldens bureaucrats to do their next, even more obnoxious thing – like getting away with their last obnoxious thing.

This bureaucrat-manufactured “banking crisis” – is emboldening the bureaucrats to further ratchet up.

Biden Calls for Stiffer Bank Regulations

Never mind that the bureaucrats have proven themselves so eminently incapable of doing the too-much-regulating with which they are already charged.

Meanwhile, more government – kills small businesses.  Since they can’t afford more government.

Since Dodd-Frank, Compliance Costs Up at Least 20% for Many U.S. Banks

Thousands Fewer Community Banks Under Dodd-Frank

Big Business can afford more government – and enjoy the more government murdering its small competitors.

Giant Banks Now 30% Bigger than When Dodd-Frank Financial ‘Reform’ Law Was Passed

Small banks have seen DC’s “reform” freight train run them over before.  So now this is happening.

Community Bankers’ Well-Timed PR Campaign

Because small banks have to waste thousands of hours and many millions of dollars better spent, you know, banking – instead fending off DC bureaucrats’ latest assault on their existence:

“The Independent Community Bankers of America (ICBA), which represents the nation’s smallest banks in Washington, is rolling out a new campaign aimed at shoring up small lenders in the wake of last month’s collapses of Silicon Valley Bank and Signature Bank….

“ICBA quickly sprang into action last month to distance its members from Silicon Valley Bank and any lingering uncertainty in the banking sector – and to make the case to policymakers that smaller banks should not be penalized ‘to cover the sins of the largest and riskiest institutions.’”

Government regulation is a shotgun – not a rifle.  Bureaucrats simply can not aim well.  So this will never, ever happen:

“The Biden administration is pursuing tougher banking rules that seem likely to spare smaller lenders – instead focusing on regional and midsize banks….”

As you’ll recall, Dodd-Frank was allegedly aimed at ending “too big to fail.”  Oops.

How Dodd-Frank Doubles Down on ‘Too Big to Fail’

So you can understand the small banks’…trepidation when DC bureaucrats promise them they will be spared DC bureaucrats’ idiocy.

And if DC’s murder of small banks was allegedly unintentional?  Imagine how tiny payday lenders feel.

Lawmakers Target Payday Loans

Biden’s CFPB Priorities: Covid, Payday Loans, Student Debt

FTC Acts to Ban Payday Lender From Industry


DC murdered thousands of small banks with Dodd Frank bank “reform” – which they promised would not do anything to small banks.

DC is now planning more bank “reform” – which they promise will not do anything to small banks.

And all along the way, DC has been actively attempting to murder payday lenders.

Because why should poor people be able to borrow money?