by Pam Martens and Russ Martens
Wall Street on Parade
Yesterday, in an emailed newsletter to readers of the New York Times, financial writer Andrew Ross Sorkin effectively admitted that he has had no clue what bank capital actually is for the past 14 years so he just grabbed the phrase “rainy day fund” to describe it – notwithstanding that the phrase has no relationship to the factual definition of bank capital and serves only the interests of the banking lobby.
Sorkin’s missive included this:
“Andrew here. A year on since the collapse of Silicon Valley Bank renewed fears about the strength of the banking system, the debate about what should happen next continues.
“But there is a more important, if perhaps prosaic, point that I want to address this morning: We’re thinking about ‘capital requirements’ — regulatory standards meant to protect banks against losses and runs on deposits, and whose levels have been a subject of discussion since the 2008 financial crisis — all wrong.