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Galston Daniel Henninger Holman W. Jenkins Andy Kessler William McGurn Walter Russell Mead Peggy Noonan Mary Anastasia O'Grady Jason Riley Joseph Sternberg Kimberley A. Strassel Allysia Finley More Editorials Commentary Future View Houses of Worship Cross Country Letters to the Editor The Weekend Interview Potomac Watch Podcast Foreign Edition Podcast Free Expression Podcast Opinion Video Notable & Quotable * Books & Arts Reviews Film Television Theater Masterpiece Series Music Dance Opera Exhibition Cultural Commentary Art Sections Arts Books More WSJ Puzzles What To Watch * Real Estate Sections Commercial Real Estate More Real Estate Video * Life & Work Sections Cars Careers Food & Drink Home & Design Ideas Personal Finance Recipes Travel Wellness Columns Your Health Work & Life Carry On Bonds Turning Points On Wine On The Clock More WSJ Puzzles Space & Science * Style Sections Lifestyle Fashion Film Television Music Art & Auctions Columns My Monday Morning Off Brand On Trend * Sports Sections MLB NBA NFL Golf Tennis Soccer Columns Jason Gay Search This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/ how-silicon-valley-bank-avoided-oversight-fdic-systemic-risk-midsize-greg-becker-dodd-frank-reporting-lobbying-5b3ff837 * Opinion * Politics & Ideas How Silicon Valley Bank Avoided Oversight Before the collapse, its CEO lobbied for a loosening of Dodd-Frank reforms, risking financial stability. By William A. Galston March 14, 2023 1:22 pm ET print Journal Editorial Report: The week's best and worst from Kyle Peterson, Mary O'Grady and Dan Henninger. Images: Charleston Gazette-Mail/AP/Getty Images Composite: Mark Kelly Listen to article (3 minutes) Martin Gruenberg, chairman of the Federal Deposit Insurance Corp., delivered remarks March 6 on the state of the banking system to the Institute of International Bankers. He reiterated his long-held view that the regime of high and rising interest rates would impair banks' longer-term-maturity assets, pointing out that rate increases had already reduced the value of these assets by $620 billion. He warned that these unrealized losses "weaken a bank's future ability to meet unexpected liquidity needs." Silicon Valley Bank's collapse four days later, followed swiftly by Signature Bank, another midsize financial firm, validated his concerns. (A smaller firm, Silvergate Capital Corp., had closed at midweek.) Depositors' confidence in the soundness of these institutions evaporated, generating a classic bank run that led federal regulators to step in. (Disclosure: My son heads two venture-capital funds that have invested in startups with substantial deposits in SVB.) Over the weekend, regulators decided to guarantee depositors for the full amount of their accounts, though the formal FDIC guarantee is capped at $250,000 per depositor. 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Sign In Sponsored Offers * Target: Target Promo Code: 20% off Entire Order * Vitacost: Get $20 off on orders $150+ sitewide w/ Vitacost Coupon Code * Walmart: 20% off your next online order - Walmart coupon code * Groupon: Groupon Promo Code - 30% Off * adidas: adidas Promo Code - 30% Off * Nike: Get up to 40% off at Nike About this article Politics & Ideas "Politics and Ideas" advocates for maintaining and updating the international defense, economic, and legal order the US helped build after WW II--taking seriously the grievances created from globalization and trade distortions by foreign statist policies. It's published online every Tuesday evening. William A. Galston William A. Galston William A. Galston writes the weekly Politics & Ideas column in the Wall Street Journal. He holds the Ezra K. Zilkha Chair in the Brookings Institution's Governance Studies Program, where he serves as a senior fellow. Before joining Brookings in January 2006, he was Saul Stern Professor and Acting Dean at the School of Public Policy, University of Maryland, director of the Institute for Philosophy and Public Policy, founding director of the Center for Information and Research on Civic Learning and Engagement (CIRCLE), and executive director of the National Commission on Civic Renewal. A participant in six presidential campaigns, he served from 1993 to 1995 as Deputy Assistant to President Clinton for Domestic Policy. Mr. Galston is the author of 10 books and more than 100 articles in the fields of political theory, public policy, and American politics. His most recent books are The Practice of Liberal Pluralism (Cambridge, 2004), Public Matters (Rowman & Littlefield, 2005), and Anti-Pluralism: The Populist Threat to Liberal Democracy (Yale, 2018). A winner of the American Political Science Association's Hubert H. Humphrey Award, he was elected a Fellow of the American Academy of Arts and Sciences in 2004. Most Popular news * Why Apple and the Carriers Want Your Old iPhone Why Apple and the Carriers Want Your Old iPhone * The American Diet Has a Sandwich Problem The American Diet Has a Sandwich Problem * Swiss Regulators Offer Financial Lifeline to Credit Suisse Swiss Regulators Offer Financial Lifeline to Credit Suisse * Market Stress Snarls Treasury Trading Market Stress Snarls Treasury Trading * Ryan Reynolds Sells Mint Mobile for $1.35 Billion to T-Mobile Ryan Reynolds Sells Mint Mobile for $1.35 Billion to T-Mobile Most Popular opinion * Opinion: About Those 'Safe' Silicon Valley Bank Treasurys About Those 'Safe' Silicon Valley Bank Treasurys * Opinion: Silicon Valley Bank and Joe Biden's $19 Trillion Monday Silicon Valley Bank and Joe Biden's $19 Trillion Monday * Opinion: DEI Is Dying On College Campuses. Or Is It? DEI Is Dying On College Campuses. 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