Trump suggested that Pence’s condemnation was driven by his single-digit showings in recent surveys of potential 2024 Republican presidential contenders. (Pence has not officially announced his candidacy, even as he has made moves toward entering the race.)
Finally Friday Reads: Resplendent with Breaking News Edition
Posted: March 17, 2023 Filed under: Breaking News, just because | Tags: #IndictmentsAreComing, Finland, NATO, Putin: International Man of Crime, Trump Grift, Trump lies, Trump Theft, Trump Traitor 14 Comments
John Constable,
Seascape Study with Rain Cloud (c.1824-1828)
Good Day Sky Dancers!
Wow, is it hard to keep up with the headlines this week! Just this morning, we learned that the ICC issued an arrest warrant for Russian President Vladimir Putin. This is from NBC News. “International Criminal Court issues arrest warrant for Putin over alleged Ukraine war crimes. The court said Friday that the Russian leader is responsible for overseeing the forced deportation of children. The Kremlin has previously denied the accusation.” It’s reported by Henry Austin.
The International Criminal Court issued an arrest warrant Friday for Russian President Vladimir Putin, accusing him of being responsible for war crimes in Ukraine.
Putin committed the “war crime” of overseeing the unlawful abduction and deportation of childrenfrom Ukraine to Russia, the court said in a news release.
“There are reasonable grounds to believe that Putin bears individual criminal responsibility for the aforementioned crimes,” the court, based in The Hague, Netherlands, said its pre-trial judges had assessed.
It added that Putin had failed to “exercise control properly over civilian and military subordinates who committed the acts, or allowed for their commission, and who were under his effective authority and control.”
Maria Alekseyevna Lvova-Belova, Putin’s presidential commissioner for children’s rights, is also alleged to have committed similar crimes, the ICC said.
While warrants are often issued in secret “to protect victims and witnesses and also to safeguard the investigation,” the release said that the court was “mindful that the conduct addressed in the present situation is allegedly ongoing, and that the public awareness of the warrants may contribute to the prevention of the further commission of crimes.”
From the early days of the invasion last February, Kyiv has accused Russia of forcibly transferring children and adults.

Franz Marc-In the Rain(Im Regen) (1912)
Turkey is backing Finland’s entrance into NATO. The NATO expansion may also give the Russian people some reason to feel less safe with Putin in charge. Hungary has also agreed to the deal. This is from Bloomberg News.
Turkey and Hungary both signaled they plan to ratify Finland’s entry into NATO, bringing the military alliance a step closer to welcoming its 31st member as the ripples from Russia’s invasion of Ukraine spread across the European security landscape.
“We’ve decided to start the process for the approval of Finland’s membership in our parliament,” President Recep Tayyip Erdogan said at a news conference Friday together with his Finnish counterpart Sauli Niinisto in Ankara. He added he hoped to complete the approval process for Finland by May 14 elections due in Turkey.
Meanwhile, Hungary plans to approve the Finnish entry March 27, Fidesz parliamentary leader Mate Kocsis said in a Facebook post. Prime Minister Viktor Orban has continually delayed a parliamentary vote in contrast with his statements of support for NATO’s enlargement.
The stance taken by Turkey and Hungary decouples the Nordic countries’ bids to join the North Atlantic Treaty Organization, filed in May to deter any Russian aggression following its invasion of Ukraine. The comments cast further doubt on the timeline for Sweden’s accession.
“Progress on Sweden’s bid depends on steps it will take,” Erdogan said. Hungary also said it will decide on Sweden’s membership at a later date.

In The Rain, 1882, Vincent van Gogh
I vividly remember someone trying to leave with the Abraham Lincoln bust during Trump’s removal from the White House. It seems more stuff went missing. This is from the Washington Post. “Two gifts to Trump family from foreign nations are missing, report says. More than 100 gifts worth nearly $300,000 were not properly reported to the government, a new report finds.”
Federal officials cannot find two gifts received by President Donald Trump and his family from foreign nations, including a life-size painting of Trump from the president of El Salvador and golf clubs from the Japanese prime minister, according to a new report from House Democrats.
The gifts are among more than 100 foreign gifts — with a total value of nearly $300,000 — that Trump and his family failed to report to the State Department in violation of federal law, according to the report, which cites government records and emails.
The 15-page report, a result of ayear-long investigation by the House Oversight Committeeinto Trump’s failure to disclose gifts from foreign government officials while in office, revealed that the Trump family did not disclose dozens of gifts from countries that are not U.S. allies or have a complicated relationship with Washington. That includes 16 gifts from Saudi Arabia worth more than $48,000, 17 gifts from India worth over $17,000, and at least 5 gifts from China. Trump reported zero gifts entirely the final year of his presidency, according to the report, while he reported some of the gifts received in previous years.
Trump repeatedly told advisers that gifts given to him during the presidency were hisand did not belong to the federal government, former chief of staff John F. Kelly and other aides have previously told The Washington Post.
Investigators are continuing to search for the large portrait of Trump gifted to him ahead of the 2020 election by Salvadoran President Nayib Bukele and the golf clubs worth more than $7,000 thatTrump received from Japanese Prime Minister Shinzo Abe during visits to the Trump International Golf Club and Kasumigaeski Country Club in 2017 and 2018, the report says.

Vasily Kandinsky Landscape with rain Guggenheim, c 1944
Count the silverware before and after anywhere this family travels. They’ll take anything! Meanwhile, court watch continues, and bets on Trump’s indictment are that both Manhattan and Georgia will come for him next week. Lock him up!
I’m beginning to wonder if Charlie Sykes reads us. Who besides me penned Orange Caligula? This is from the Bulwark. “Trump Picks an Enemy: Us. The Orange Caligula sides with Russia.” Of course, he does. I bet he heads there if those indictments come through too.
Because on Earth 2.0, this would be the stuff of endless news cycles and nightmares.
Here is Donald Trump channeling Kremlin propaganda, siding with Russia, even as he declares that our real enemy is . . . other Americans.
Despite the wishcasting punditry, the magical thinking of his rivals, and the fervent hopes of the Hollow Men of the GOP, this man is the presumptive nominee of the Republican party, and therefore possibly the next president of the United States. (The DeSantis bubble hasn’t burst. But it’s leaking.)
I don’t mean to alarm you. You should be alarmed.
Let’s break this down:
*The Purge
TRUMP: The State Department, the defense bureaucracy, the intelligence services, and all of the rest need to be completely overhauled and reconstituted to fire the Deep Staters and put America first.
We have to put America first.
At a time of growing international tension, the former president is threatening a massive purge of the nation’s defense infrastructure. He proposes dismantling — and completely overhauling — the Defense Department, the nation’s intelligence agencies (our eyes and ears), and the country’s foreign policy capabilities.
Mass firings, the loss of centuries of experience. A purge of independent, adult voices, and anyone else who might tell the new president “no.”
More important though, after the purge of the “Deep Staters,” he would “reconstitute” the country’s destroyed defenses, presumably by stacking the agencies with his own loyalists.
All while Russia advances, China rattles sabers, and the Middle East boils.
You can read the rundown that includes dumping NATO. We just found out Hungary and Turkey aren’t even up for that.

Nixen (Silberfische). Nymphs, Gustav Klimt, cc 1899,
When Donald Trump called Georgia Secretary of State Brad Raffensperger on Jan. 2, 2021, in a now-infamous bid to overturn the 2020 election, he alleged that thousands of dead people had voted in the state.
“So dead people voted, and I think the number is close to 5,000 people. And they went to obituaries. They went to all sorts of methods to come up with an accurate number, and a minimum is close to about 5,000 voters,” he said, without citing his study.
But a report commissioned by his own campaign dated one day prior told a different story: Researchers paid by Trump’s team had “high confidence” of only nine dead voters in Fulton County, defined as ballots that may have been cast by someone else in the name of a deceased person. They believed there was a “potential statewide exposure” of 23 such votes across the Peach State — or 4,977 fewer than the “minimum” Trump claimed.
In a separate failed bid to overturn the results in Nevada, Trump’s lawyers said in a court filing that 1,506 ballots were cast in the names of dead people and 42,284 voted twice. Trump lost the Silver State by about 33,000 votes.
The researchers paid by Trump’s team had “high confidence” that 12 ballots were cast in the names of deceased people in Clark County, Nev., and believed the “high end potential exposure” was 20 voters statewide — some 1,486 fewer than Trump’s lawyers said.
According to their research, the “low end potential exposure” of double voters was 45, while the “high end potential exposure” was 9,063. The judge tossed the Nevada case even as Trump continued to claim he won the state.
The “Project 2020” report conducted by the Berkeley Research Group has now been obtained by prosecutors investigating the Jan. 6, 2021, attack on the U.S. Capitol. A copy was reviewed by The Washington Post, and it shows that Trump’s own campaign paid more than $600,000 for research that undercut many of his most explosive claims. The research was never made public.
The Justice Department has sought and obtained multiple reports, emails and interviews from witnesses that show campaign officials analyzing, and often discrediting, claims that Trump was making publicly, according to several people involved in the investigation, who like some others spoke on the condition of anonymity to disclose internal details. The Berkeley report was provided to the Justice Department earlier this month, one of the people said, after some people involved in its crafting received a subpoena.
Why do people believe this idiot? Nothing he says is true.
Anyway, I’m cold and achy. It’s raining like crazy and has gone into the 40s. It’s the second coming of Winter. I have to dig out clothes I just boxed up, and I’m ready to sleep for some time. Between this and the time change, I feel like a slug.
Have a good weekend! Indictments are coming!
What’s on your reading and blogging list today?
Thursday Reads
Posted: March 16, 2023 Filed under: just because 10 CommentsGood Afternoon!!

Reader with a yellow book, Henri Manguin
There’s still no word on the crazy judge in Texas who could block access to the abortion pill mifepristone nationwide. Reuters has a good article summarizing the yesterday’s hearing.
Gabriella Borter and Brendan Pierson at Reuters: Judge mulls banning abortion pill in US, questions regulatory approval.
AMARILLO, Texas, March 15 (Reuters) – A U.S. judge on Wednesday questioned lawyers for President Joe Biden’s administration on whether the federal regulatory approval given to the abortion pill mifepristone 22 years ago was proper as he considered a request by anti-abortion groups to ban sales of the drug nationwide.
U.S. District Judge Matthew Kacsmaryk during a hearing in Amarillo also pressed the groups, led by the Texas-based Alliance for Hippocratic Medicine, to explain how he could reverse approval of a long-established drug.
The judge raised the possibility of a more limited ruling, keeping the drug on the market but re-imposing some restrictions lifted by Biden’s administration, including requiring it to be dispensed in person rather than by mail. Kacsmaryk, appointed to the bench by former President Donald Trump, said he would rule “as soon as possible.”
It is shaping up as the most consequential abortion case since the U.S. Supreme Court, powered by its conservative majority, last year overturned its landmark 1973 Roe v. Wade ruling that had recognized a constitutional right to terminate a pregnancy.
The anti-abortion groups sued the U.S. Food and Drug Administration in November, contending the agency used an improper process when it approved mifepristone in 2000 and did not adequately consider the drug’s safety when used by girls under age 18.
The plaintiffs are asking Kacsmaryk for a preliminary order halting sales of mifepristone nationwide – even in states where abortion is legal – while their lawsuit proceeds.
On yesterday’s arguments:
Erik Baptist, a lawyer with the conservative legal group Alliance Defending Freedom representing the plaintiffs, said the scope of the judge’s ruling should be “universal and nationwide.”
Woman Reading, Albert Reuss, 1889-1975
The judge questioned lawyers for Biden’s administration on how the FDA accelerated its approval for mifepristone under a process typically used for drugs to treat HIV infection and other life-threatening illnesses. The administration has said that the drug’s approval was well supported by science, and that the challenge comes much too late.
Lawyers for the U.S. Justice Department and an attorney for mifepristone’s manufacturer, Danco Laboratories, argued that the plaintiffs had no standing to bring the case, and said mifepristone has an impressive safety and efficacy record.
“An injunction here would upend the status quo. An injunction would cause significant public harm,” Justice Department attorney Julie Straus Harris told the judge.
Harris also argued that a ruling in favor of the plaintiffs would undercut trust in the FDA, the agency charged with signing off on the safety of food products and drugs in the United States. Harris said such a ruling would also increase the burden on surgical abortion clinics, already overcrowded as they admit patients from states where clinics have closed in the wake of last year’s Supreme Court decision.
Read the rest at Reuters
Some breaking news on that U.S. drone that collided with a Russian fighter plane:
NPR: The U.S. military releases footage of Black Sea drone crash with Russian jet.
The U.S. European Command has declassified footage showing the moments when two Russian fighter jets flew very close to a U.S. drone over the Black Sea, dumping fuel on it — and, the Pentagon says, eventually flying into the drone. The video footage appears to show the U.S. craft was damaged by a collision.
The release of the video comes two days after the Pentagon said a Russian Su-27 fighter clipped the propeller of an uncrewed MQ-9 Reaper drone that was operating in international airspace, forcing it down into the water. The Kremlin says its jets did not make contact with the drone.
The footage gives brief glimpses of the encounter, which U.S. officials say lasted for at least a half hour. The Pentagon says the video depicts events in the order they happened, although it was edited to condense the action.
In the 42-second video, a Russian Su-27 aircraft is seen approaching from the drone’s rear quarter, releasing a plume of fuel as it pulls upward and over the drone, causing the footage to partially pixelate. The camera recovers as the fighter jet pulls away, showing the drone’s rear-mounted propeller in normal working condition.
The footage then shows what the Pentagon says is an “even closer” pass from a Russian jet.
Approaching from what looks to be a lower angle, the Su-27 releases more fuel and its fuselage is seen coming extremely close to the drone before the video cuts out entirely. The Pentagon says the camera feed was lost for around 60 seconds.
When the feed returns, the camera, which is mounted beneath the MQ-9, pivots to show the drone’s propeller has been partially mangled.
Shortly afterward, the aircraft crashed into the Black Sea off the southern coast of Ukraine — a country that the U.S. and dozens of other countries are supporting in its war against Russia. The U.S. has been monitoring movements by Russian troops and warships in the area.
The U.S. European Command described the encounter as “an unsafe and unprofessional intercept.”
There’s more at the link.
More from Courtney Cube and Carol Lee at NBC News: Russian leadership approved aggressive actions of jets that damaged U.S. drone, U.S. officials say.
Three U.S. officials familiar with the intelligence said the highest levels of the Kremlin approved the aggressive actions of Russian military fighter jets against a U.S. military drone over the Black Sea on Tuesday.
The Russian jets dropped jet fuel on the MQ-9 Reaper, an unprecedented action, and two of the officials said the intelligence suggests the intent seemed to be to throw the drone off course or disable its surveillance capabilities.
Lucie Belin Smiling (1915). by Jean-Édouard Vuillard (French, 1868-1940).
It was “Russian leadership’s intention to be aggressive in the intercept,” said one of the officials.
One official said he had not gotten indications that the signoff went all the way up to Putin. Other officials declined to provide specifics beyond “highest levels.”
The Russian jet actually clipping the propeller of the drone — which the U.S. says occurred and Russia denies — was likely not intentional, said the officials, who believe it was pilot error, based on U.S. video of the incident.
Three defense officials and one Biden administration official also said the Russians have already reached the area where the MQ-9 Reaper crashed. The Russians are actively looking for the debris with ships and aircraft, but the U.S. hasn’t seen any indication that they’ve been able to recover any of it, officials said. One official said much of the debris sank into the Black Sea.
The U.S. is unlikely to try to recover the remnants of the crashed drone, according to the three U.S. officials familiar with the intelligence.
Gen. Mark Milley, the chairman of the Joint Chiefs of Staff, said at a news conference on Wednesday that there’s probably not a lot of debris to recover and noted the part of the Black Sea where the drone landed is as much as 5,000-feet deep.
News on the Georgia election interference case:
If you watched TV last night, you probably heard about this story by Tamar Hallerman and Bill Rankin at The Atlanta Journal-Constitution, but it’s well worth reading the whole article; I can only excerpt a small part of it. The article is a detailed description of what happened in the grand jury, based on interviews with several jurors: EXCLUSIVE: Behind the scenes of Trump grand jury; jurors hear 3rd leaked Trump call.
A number of the jurors criticized Emily Khors, the jury foreperson, who previously spoke to media outlets.
Several jurors said they decided to speak out for the first time in responseto criticism leveled at the probe after Kohrs spoke to multiple media outlets last month. Some detractors, including Trump’s Georgia-based legal team, said that Kohrs’ remarks showcased an unprofessional, politically tainted criminal investigation.
The jurors, who stressed their aim was not to drag down Kohrs, underscored that they understood the gravity of their assignment and took care to be active participants and attend as many sessions as possible. They said the investigation was somber and thorough.
“I just felt like we, as a group, were portrayed as not serious,” one of the jurors said. “That really bothered me because that’s not how I felt. I took it very seriously. I showed up, did what I was supposed to do, did not do what I was asked not to do, you know?” [….]
They also divulged details from the investigation that had yet to become public.
Piero di Cosimo, 1462-1522, Magdalen Reading
One was that they had heard a recording of a phone call Trump placed to late Georgia House Speaker David Ralstonin which the president asked the fellow Republican to convene a special session of the Legislature to overturn Democrat JoeBiden’s narrow victory in Georgia.
One juror said Ralston proved to be “an amazing politician.”
The speaker “basically cut the president off. He said, ‘I will do everything in my power that I think is appropriate.’ … He just basically took the wind out of the sails,” the juror said. “‘Well, thank you,’ you know, is all the president could say.”
Ralston and other legislative leaders did not call a special session. A former Ralston aide declined to comment for this story, and a Trump campaign spokesman did not respond to a request for comment.
There was a tidbit about Lindsey Graham’s testimony:
One grand juror recalled U.S. Sen. Lindsey Graham’s testimony about Trump’s state of mind in the months after the 2020 election.
“He said that during that time, if somebody had told Trump that aliens came down and stole Trump ballots, that Trump would’ve believed it,” the juror said.
Just one more excerpt:
The group said they had no idea what Willis planned to do in response to their recommendations. But many described an increased regard for the elections system and the people who run it.
“I can honestly give a damn of whoever goes to jail, you know, like personally,” one juror said. “I care more about there being more respect in the system for the work that people do to make sure elections are free and fair.”
Said another juror: “I tell my wife if every person in America knew every single word of information we knew, this country would not be divided as it is right now.”
The grand jurors said they understand why the public release of their full final report needs to wait until Willis makes indictment decisions.
“A lot’s gonna come out sooner or later,” one of the jurors said. “And it’s gonna be massive. It’s gonna be massive.”
Read much more at the link if you’re interested.
January 6 investigation news:
Zoe Tillman at Bloomberg News: DOJ Told Court to Expect a Deluge of New Jan. 6 Prosecutions.
More than 1,000 additional people could still face charges in connection with the Jan. 6, 2021 attack on the US Capitol, according to a letter to the DC federal court from the US attorney in Washington.
The one-page letter, which was reviewed by Bloomberg News, was sent late last year to the chief judge and hasn’t been previously reported. It offers details on what Attorney General Merrick Garland has called “one of the largest, most complex, and most resource-intensive investigations in our history.”
berthe Morisot, Reading, 1873
The Oct. 28 letter from US Attorney Matthew Graves to Chief Judge Beryl Howell, which came as the department neared its 900th arrest, estimated an additional 700 to 1,200 defendants. That could roughly double the number of cases filed so far – with this month marking the 1,000th arrest, according to statistics from the US attorney’s office.
The more than 1,000 people already charged have clogged the court’s docket over the past two years. And prosecutors continue to bring new cases as Special Counsel Jack Smith pursues a separate probe into efforts by former President Donald Trump and his allies to undermine the 2020 election results.
Graves warned Howell in the letter that it was “incredibly difficult” to predict future cases given the “nature and the complexity of the investigation.” He wrote that he didn’t know how many of the new cases would involve misdemeanor versus felony charges, but he expected a higher percentage of felonies.
“We expect the pace of bringing new cases will increase, in an orderly fashion, over the course of the next few months,” Graves wrote.
Judge Beryl Howell is stepping down as the top judge in DC. At CNN, Katelyn Polantz and Courtney Sneed report on her replacement: There’s a new chief judge in DC who could help determine the fate of Donald Trump.
A new chief judge in the federal courthouse in Washington, DC, is poised to take over as that position has become one of the most influential in the nation’s capital, playing a key role in deciding issues that could factor into whether former President Donald Trump is indicted.
Chief Judge Beryl Howell, who has served in that role since 2016, has repeatedly green-lit Justice Department requests to pursue information about Trump’s actions, from his top advisers and lawyers and even inside the White House. She’ll be succeeded by James “Jeb” Boasberg, a fellow Barack Obama appointee and one-time Brett Kavanaugh law school roommate who’s well-known in Washington.
While presiding over the highly secretive Foreign Intelligence Surveillance Court in 2020 and 2021, Boasberg encouraged the declassification of information so that the public could read proceedings related to the FBI’s probe into possible collusion between Trump and Russia.
If the Justice Department were to indict Trump, the case would be randomly assigned to one of the district court’s judges, meaning the chief could handle the case but may not. Still, the chief judge has unusual sway over the pace and scope of investigations as the Justice Department attempts to enforce its grand jury subpoenas, obtain warrants and access evidence it has collected by arguing to the chief judge in sealed proceedings.
“This court would be ready,” Howell said in a recent interview with CNN, when asked about the historic possibility of a Trump indictment. She added any judge on that court “would do it justice.”
Howell, who steps down from the position on Friday, may conclude her tenure by issuing decisions in sealed cases related to special counsel Jack Smith’s investigations into Trump’s efforts to overturn the 2020 election and his handling of classified material at Mar-a-Lago. Already, she granted Kash Patel – a former administration official – immunity for testimony he provided the grand jury investigation. She also held off a Justice Department request to place Trump in contempt for his alleged failure to turn over subpoenaed classified documents.
Read more at CNN.
Ron DeSantis is getting plenty of media attention as he builds up to a presidential run.
Axios fired a reporter after attacks from the DeSantis administration. The Washington Post: Fla. reporter fired after calling news release on DeSantis event ‘propaganda’
An Axios reporter in Tampasaid he was fired this week after he responded to a Florida Department of Education email about an event featuring Gov. Ron DeSantis (R), calling the news release “propaganda.”
Ben Montgomery said he received a call on Monday evening from Jamie Stockwell, executive editor of Axios Local, who asked Montgomery to confirm he sent the email before saying the reporter’s “reputation in the Tampa Bay area” had been “irreparably tarnished.”
Leer para vivir, by Lucy McGowan Diecks (1907-1998)
The news release sent Monday afternoon said DeSantis, a potential 2024 GOP presidential candidate, had hosted a roundtable “exposing the diversity equity and inclusion scam in higher education.” It also called for prohibiting state funds from being used to support DEI efforts.
“We will expose the scams they are trying to push onto students across the country,” DeSantis said in the statement.
Montgomery, a Pulitzer Prize finalist, replied to the email three minutes after getting it. “This is propaganda, not a press release,” he wrote to the Department of Education press office.
About an hour after that, the Education Department’s communication officer, Alex Lanfranconi, shared Montgomery’s reply on Twitter, where it has since been viewed more than 1 million times.
Montgomery said the news release had “no substance,” adding that he “read the whole thing and it was just a series of quotes about how bad DEI was.”
Axios editor in chief Sara Kehaulani Goo confirmed Montgomery is no longer employed by Axios, but declined to comment further.
Just one more reason to dislike Axios beside their ridiculous bullet-point story style.
Sarah Mervosh at The New York Times: Florida Scoured Math Textbooks for ‘Prohibited Topics.’ Next Up: Social Studies.
…[I]n Florida, textbooks have become hot politics, part of Gov. Ron DeSantis’s campaign against what he describes as “woke indoctrination” in public schools, particularly when it comes to race and gender. Last year, his administration made a splash when it rejected dozens of math textbooks, citing “prohibited topics.”
Now, the state is reviewing curriculum in what is perhaps the most contentious subject in education: social studies.
In the last few months, as part of the review process, a small army of state experts, teachers, parents and political activists have combed thousands of pages of text — not only evaluating academic content, but also flagging anything that could hint, for instance, at critical race theory.
A prominent conservative education group, whose members volunteered to review textbooks, objected to a slew of them, accusing publishers of “promoting their bias.” At least two publishers declined to participate altogether.
And in a sign of how fraught the political landscape has become, one publisher created multiple versions of its social studies material, softening or eliminating references to race — even in the story of Rosa Parks — as it sought to gain approval in Florida….
It is unclear which social studies textbooks will be approved in Florida, or how the chosen materials might address issues of race in history. The state is expected to announce its textbook decisions in the coming weeks.
Emphasis added.
One more from The Daily Beast: The GOP Campaign Trail Is Already Getting DeSantis-Proofed.
At any given fundraiser or VIP room where he’s present, Ron DeSantis is usually easy to find—in the corner, keeping to himself.
Despite having a job that entails exchanging small talk and pleasantries on a daily basis, the Florida governor tends to brush off those obligations and struggles with basic social skills, according to a source close to DeSantis, several of his former staffers, and other GOP operatives who have worked with him and his team.
As DeSantis gears up for a potential White House run in 2024, his aloof public persona is being thought of by his rivals—namely, former President Donald Trump—as his Achilles heel in the retail politics-heavy early primary states.
And even though he hasn’t announced a bid yet, DeSantis’ apparent desire to test the waters of a presidential campaign—while barely dipping a toe into the aspects he recoils from—is already being put to the test.
During his donor retreat in Palm Beach in late February, an attendee stood up and called him “DeSatan,” according to Republicans familiar with the outburst.
At his recent book tour stop in Davenport, Iowa, a volunteer English teacher and seasoned caucus enthusiast posed for a photo alongside the governor with the term “fascist” carved out within her design of a paper snowflake.
The governor’s aversion to pressing the flesh, and his concern over the risk of unexpected interactions with the public, is already so well-known that early primary state players are working to DeSantis-proof their events in order to attract the flinty would-be candidate and his tight-knit team.
The problem is, hosts often have no idea what the DeSantis team wants.
“Easily the least responsive campaign I’ve ever dealt with,” one veteran event host in an early primary state told The Daily Beast, requesting anonymity to avoid alienating the Florida governor.
There has been a lot of reporting on DeSantis’ nasty personality and lack of charisma. I hope it will keep him from the nomination.
That’s it for me today. I’m really late because I had quite a struggle with WordPress. I ended up having to completely redo the formatting–had to hunt down all the article links and redo the indentations. I hope I did it right.
Wednesday Cartoons: Judge Krapsmaryk
Posted: March 15, 2023 Filed under: abortion rights, birth control, morning reads, open thread, Political and Editorial Cartoons, Reproductive Health, Reproductive Justice, Reproductive Rights | Tags: Judge Matthew Kacsmaryk 14 Comments
Good morning…hitting the cartoons first, via Cagle:





























Later…sometime today:
I will put any updates on this Judge’s decision in the comments.





This was the best moment of the Oscar’s:
Watch till the end…






And on that note…have a safe day, this is an open thread.
Tuesday Reads
Posted: March 14, 2023 Filed under: just because 22 CommentsGood Afternoon!!
I need to spend some more time rereading Dakinikat’s Monday offering. I came down with a stomach virus yesterday and I was too nauseated to deal with serious news; but I read enough to know that it was a very good post. Why must we continually be forced to clean up the messes created by America’s greedy millionaires and billionaires?
Here’s some breaking news on the SVB story:
The Wall Street Journal: Justice Department, SEC Investigating Silicon Valley Bank’s Collapse.
The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, according to people familiar with the matter, after the California lender was taken over by regulators last week amid a historic run on its deposits.
The separate probes are in their preliminary phases and may not lead to charges or allegations of wrongdoing. Prosecutors and regulators often open investigations after financial institutions or public companies suffer big, unexpected losses. Shares in SVB Financial Group SIVB 0.00%increase; green up pointing triangle, which formerly owned the bank, fell 60% last week and have been stopped from trading since Friday.
The investigations are also examining stock sales that SVB Financial’s officers made days before the bank failed, the people said. The Justice Department probe involves the department’s fraud prosecutors in Washington and San Francisco, the people said….
Before SVB failed last week and was taken over by the Federal Deposit Insurance Corp., it catered mainly to the insular world of startups and the investors who fund them. Its deposits boomed alongside the tech industry, rising 86% in 2021 to $189 billion.
The bank fell victim last week to a run on deposits. Customers tried to withdraw $42 billion—about a quarter of the bank’s total deposits—on Thursday alone. The flood of withdrawals destroyed the bank’s finances. It had poured large amounts of deposits into U.S. Treasurys and other government-sponsored debt securities whose market value declined as the Federal Reserve hiked interest rates over the past year.
SVB Financial cautioned in its latest annual report to investors that its business was heavily focused on lending to newer companies in the technology, life-science and healthcare industries. “Our loan concentrations are derived from our borrowers engaging in similar activities that could cause those borrowers to be similarly impacted by economic or other conditions,” it said.
Mr. Becker expressed optimism days before his bank collapsed, saying at a conference last week that it was “a great time to start a company.” He said at a different conference last month that the bank’s focus on those industries didn’t create the risk of too much concentration, citing clients’ different specializations and the bank’s business overseas.
This is interesting:
Securities filings show Mr. Becker and Mr. Beck, the chief financial officer, both sold shares the week before the bank collapsed. Mr. Becker exercised options on 12,451 shares on Feb. 27 and sold them the same day, netting about $2.3 million.
Mr. Beck sold just over $575,000 worth of shares on Feb. 27, roughly one-third of his holdings in the company.
Both sales were done under so-called 10b5-1 plans filed 30 days earlier. These plans allow insiders to schedule share sales in advance to allay suspicion of trading on nonpublic information. The SEC recently tightened rules for the plans, which include a 90-day waiting period before sales can be executed. The new rules went into effect on Feb. 27, the same day the executives sold.
There’s a bit more at the link, but that’s the gist of the story. I didn’t encounter a paywall.
This is insane. Republicans are trying to claim that SVB is a “woke” bank and that explains the collapse.
This is from Jamelle Bouie at The New York Times: The Boys Who Cried ‘Woke!’
As soon as it was clear that Silicon Valley Bank would not survive the weekend, conservative influencers and Republican politicians had a culprit in sight.
Wokeness.
“They were one of the most woke banks,” Representative James Comer, the top Republican on the House Oversight Committee, said during a segment on Fox News.
The governor of Florida, Ron DeSantis, also spoke to Fox News about the collapse of the bank, and he also blamed the bank’s diversity programs. “I mean, this bank, they’re so concerned with D.E.I. and politics and all kinds of stuff. I think that really diverted from them focusing on their core mission,” he said.
A Saturday headline in The New York Post declared, “While Silicon Valley Bank Collapsed, Top Executive Pushed ‘Woke’ Programs.” And over at The Wall Street Journal, Andy Kessler wondered if “the company may have been distracted by diversity demands.”
On Twitter, a number of prominent conservatives took this message and ran with it. Donald Trump Jr. said that “SVB is what happens when you push a leftist/woke ideology and have that take precedent over common sense business practices.” Stephen Miller, a key White House aide to Donald Trump, accused the bank of wasting its funding on “trendy woke BS.” And Senator Josh Hawley, Republican of Missouri, complained that “these SVB guys spend all their time funding woke garbage (‘climate change solutions’) rather than actual banking and now want a handout from taxpayers to save them.”
Can you believe this shit? Well known right-wing libertarian Peter Thiel is the one who recommended that companies should pull their money out of SVB and sparked the bank run.
It is unclear whether these conservatives are working from the same memo or just have the same narrow obsession. Regardless, there is no evidence that any diversity, equity and inclusion initiatives were responsible for the collapse of Silicon Valley Bank. It is nonsense. And while it shouldn’t be taken seriously on its own terms, this deflection is worth noting for what it represents: the relentless effort to mystify real questions of political economy in favor of endless culture war conflict.
The real story behind the collapse of Silicon Valley Bank has much more to do with the political and economic environment of the previous decade than it does with wokeness, a word that signifies nothing other than conservative disdain for anything that seems liberal.
Read the rest at the NYT.
Mike Pence is in the news, and not in a good way. He gave a speech at the Gridiron Dinner a couple of days ago, and the headline from that was that he weakly criticized Trump, indicating history should deal with his crimes instead of law enforcement actions in the present. Today, Pence is also being criticized for a “joke” he told about Peter Buttigieg at the dinner.
CNN: White House calls on Pence to apologize for ‘homophobic joke’ about Buttigieg.
The White House on Monday called on Mike Pence to apologize for his remark that Transportation Secretary Pete Buttigieg had gone on “maternity leave,” saying that the former vice president’s “homophobic joke” at the Gridiron Club dinner on Saturday was “offensive and inappropriate.”
“The former vice president’s homophobic joke about Secretary Buttigieg was offensive and inappropriate, all the more so because he treated women suffering from postpartum depression as a punchline,” White House press secretary Karine Jean-Pierre said in a statement. “He should apologize to women and LGBTQ people, who are entitled to be treated with dignity and respect.”
Pence delivered the line Saturday evening at the annual Gridiron Club dinner in Washington, DC – an event bringing together some of the city’s most prominent journalists, including from CNN, and the government officials they cover. It traditionally features politicians making jokes about notable Washington figures.
The former vice president quipped that if President Joe Biden doesn’t run for reelection, “there’s Pete Buttigieg, who’s an old friend of mine.”
“When Pete’s two children were born, he took two months maternity leave, where upon thousands of travelers were stranded in airports, the air traffic system shut down, airplanes nearly collided in midair,” Pence said. “I mean, Pete Buttigieg is the only person in human history to have a child and all the rest of us get postpartum depression.”
Mike Pence is vile trash. Buttigieg’s husband fired back.
MSNBC opinion writer Zeeshan Aleem on Pence’s remarks about Trump: Mike Pence’s latest fighting words are not in fact fighting words.
Speaking Saturday at the Gridiron Dinner, a white-tie event organized by journalists in Washington, Pence delivered his sharpest break from Trump to date. “History will hold Donald Trump accountable for Jan. 6,” Pence said. “Make no mistake about it: What happened that day was a disgrace, and it mocks decency to portray it in any other way. President Trump was wrong. His reckless words endangered my family and everyone at the Capitol that day.”
The Washington media received Pence’s remarks as “biting” and as an “unexpected twist.” Given that Pence was attending a dinner with journalists, it’s clear he was trying to launch a new narrative about his relationship with Trump and about his own willingness to stand up for what he apparently believes is right.
But Pence’s comments stand out as much for what they don’t say as for what they do. Who exactly is meant to hold Trump accountable? In Pence’s account, justice is delegated to the ethereal forces of “history,” instead of, say, the GOP, the American public or the criminal justice system. Pence’s calling for accountability but ruling out its meaningful pursuit reveals how his Trump challenge is affective in nature, not substantive.
Pay close attention, too, to how Pence frames Trump’s behavior. Trump was “wrong”; his behavior was a “disgrace”; acknowledging this is as matter of “decency.” Pence’s language carefully limits his criticism of Trump to a matter of personal misconduct. What’s missing is a reckoning with the political mechanics of what was happening — an authoritarian rejection of the democratic process. And while Pence talks about the lives of Pence’s family and lawmakers at the Capitol, he doesn’t talk about the ongoing threat posed to democratic life. The central question facing the GOP as it evolves in the age of Trump is whether or not it will choose to reject full-fledged denialism of empirical reality and the legitimacy of democratic institutions. Pence has nothing of significance to say about that question.
Yesterday Trump was in Iowa and he responded to Pence’s remarks about him.
From the WaPo piece:
DAVENPORT, Iowa — Donald Trump on Monday sharply rebuked Mike Pence’s assertion that history would hold him accountable for the Jan. 6, 2021, attack on the U.S. Capitol, telling reporters that his former vice president should shoulder the blame for the violent riot that day by Trump’s supporters.
“Had he sent the votes back to the legislatures, they wouldn’t have had a problem with Jan. 6, so in many ways you can blame him for Jan. 6,” the former president said, referring to Pence’s refusal to reject the electoral college votes in Congress as Trump wanted him to do that day. “Had he sent them back to Pennsylvania, Georgia, Arizona, the states, I believe, number one, you would have had a different outcome. But I also believe you wouldn’t have had ‘Jan. 6’ as we call it.”
A pro-Trump mob attacked the Capitol on that day following months of false claims by Trump that the election was stolen from him. He also used incendiary and false rhetoric about the election at a rally at the Ellipse near the White House shortly before the rioters stormed the Capitol.
Trump was responding to Pence’s remarks on Saturday, where he said unequivocally that Trump had been “wrong” to demand he overturn the election, something Pence maintained he had no power to do. “His reckless words endangered my family and everyone at the Capitol that day,” Pence said during a speech at the white-tie Gridiron dinner in Washington. “And I know that history will hold Donald Trump accountable.”
“I guess he figured that being nice is not working,” Trump said. “But, you know, he’s out there campaigning. And he’s trying very hard. And he’s a nice man, I’ve known him, I had a very good relationship until the end.”
Ron DeSantis was in Iowa yesterday too, and he expressed opposition to the U.S. supporting Ukraine against Russia’s invasion.
From NBC News:
Florida Gov. Ron DeSantis, a potential Republican presidential candidate, broke with many in his party Monday and told Fox News host Tucker Carlson that protecting Ukraine is not a “vital” national interest for the U.S.
“While the U.S. has many vital national interests — securing our borders, addressing the crisis of readiness within our military, achieving energy security and independence, and checking the economic, cultural, and military power of the Chinese Communist Party — becoming further entangled in a territorial dispute between Ukraine and Russia is not one of them,” DeSantis wrote in a questionnaire response Carlson posted on his Twitter feed.
“The Biden administration’s virtual ‘blank check’ funding of this conflict for ‘as long as it takes,’ without any defined objectives or accountability, distracts from our country’s most pressing challenges,” DeSantis continued.
He argued that “peace should be the objective” for the U.S. and expressed his opposition to sending “F-16s and long-range missiles” to help Ukraine defend itself against Russian President Vladimir Putin’s war.
The response aligns DeSantis with former President Donald Trump — who leads many GOP primary polls — and against many congressional Republicans who have supported aid to Ukraine. It signals the growing power of isolationist sentiments within a party that has long advocated for an active U.S. presence in global affairs. And it is likely to be an issue in the party’s presidential primary.
I really can’t stomach the idea of watching a primary fight between Trump and DeSantis. I’m still not feeling so hot and that notion is making my symptoms worse. Take care, Sky Dancers!
Melt Down Monday: Another Fine Mess Trumplicans got us into
Posted: March 13, 2023 Filed under: just because | Tags: Bank Runs, Bernie Sanders, CryptoCurrency, Dodd-Frank bill, Elizabeth Warren, FDic, Federal Reserve Bank, Flash Digital Bank Runs, Janet Yellen, junk bond king, Katie Porter, SEC, Silicon Valley Bank, US Treasury 15 CommentsMy body still tells me to say Good Morning!
I’m only on my second cup of coffee while waiting for my Irish Oats to cook. The clock tells me it’s afternoon, but something about me refuses to believe it. Why am I rudely being pushed into a part of the day rather than enjoying my lazy morning and looking forward to my Night Life? The best thing about teaching Grad school is that I no longer teach morning classes. Thanks to Dubya (wrecked the country) Bush, I only have that sacred space with its full glory for about 4 months a year. I’m grading midterms and wading through a seriously unnecessary set of bank failures in a bit of a fog. This is my version of No Exit.
Every time I teach my Grad Derivatives class in the Spring, some unnecessary financial crisis pops up. It’s not a huge one like another thing for which we can thank Dubya (wrecked the economy), Bush, and his cronies. This will not be the next “Great Recession” creator.
The Republicans under Theodore Roosevelt and Ulysses S Grant determined that you cannot trust huge actors in concentrated markets to regulate themselves. They called them trusts back then. They muck things up worse than the regulations while taking advantage of their customers for extraordinary profits until the jig is up. They also lead to substantial negative spillover costs paid for with taxpayer money. Many times, especially with situations like the Norfolk situation, victims of these costs never fully recover their losses. Real economists know this. It’s why Republicans haven’t had one around since Bernanke.
I wrote extensively about why the financial system ran amok and wrecked the economy around 2008. I am again writing about a very similar situation. Much of it’s rooted in the chipping away of protections set up to protect us from a recurrence of the Great Recession removed by Trump, the Republicans, and any elected official that basically gets vast donations from Wall Street and Banks. NBC News Sahil Kapur follows the ties between that and what’s happening now. “Silicon Valley Bank collapse puts new spotlight on a 2018 bank deregulation law. Democratic Sen. Elizabeth Warren, who led the push against that Trump-era law, now wants to restore those rules on financial institutions. Biden is also calling on Congress to act.”
Five years ago, Warren was the most outspoken opponent of the Republican-led Congress’ push to undo regulations imposed under the 2010 Dodd-Frank law for small and midsize banks. The bill, led by Sen. Mike Crapo, R-Idaho, sought to reclassify the “too big to fail” standard, which came with enhanced regulatory scrutiny. By raising the threshold from $50 billion in assets to $250 billion, medium-size banks were exempted from those regulations.
“Had Congress and the Federal Reserve not rolled back the stricter oversight, S.V.B. and Signature would have been subject to stronger liquidity and capital requirements to withstand financial shocks,” Warren wrote Monday. “They would have been required to conduct regular stress tests to expose their vulnerabilities and shore up their businesses. But because those requirements were repealed, when an old-fashioned bank run hit S.V.B., the bank couldn’t withstand the pressure — and Signature’s collapse was close behind.”
Sen. Bernie Sanders, I-Vt., who also opposed the 2018 law, blamed it for Silicon Valley Bank’s collapse.
“Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed,” he said in a statement. “Five years ago, the Republican Director of the Congressional Budget Office released a report finding that this legislation would ‘increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail.’”
The 2018 battle featured intense lobbying by banks — including Silicon Valley Bank and an array of smaller community banks — that were seeking regulatory relief.
The bill passed the House 258-159, winning 225 Republicans and 33 Democrats. In the Senate, it needed some Democrats to defeat a filibuster and achieve 60 votes. Warren infuriated some colleagues when she called out some Senate Democrats by name for trying to weaken Dodd-Frank rules.
In the end, 17 Democrats joined a unanimous Senate Republican conference to pass it. Trump signed it into law.
The entire financial industry plays a role in the economy held by no other. The safekeeping role is why rules for bank deposits, the FDIC insurance mandates exist, and capitalization laws are in place. I think no one teaches about the Bank Holidays and Runs we experienced during the Great Depression. The more you chip away at what used to be legal differences and responsibilities between banks with deposits and fiduciary responsibility and their ability to play around with risky loans and investments, the more these things will reoccur. Also, speculative investors like hedge funds’ special tax treatment lower their risk costs and increase their ability to make investment decisions that have a likelihood of implosion. The rollback of substantial sections of Dodd-Frank was integral to last week’s runs.
More importantly, the recent failures of financial institutions and companies involved with Cryptocurrencies will be part of the focus as state and federal regulators–including the Fed–do a post-mortem on both Silicon Valley and the Signature Bank in New York. These banks look like Country Clubs for risky and poorly managed loan portfolios. They have many big accounts backed up by cryptocurrency, a highly speculative and risky asset. This is from CNBC. “Regulators close crypto-focused Signature Bank, citing systemic risk.” The reporter is Yun Li.
The banking regulators said depositors at Signature Bank will have full access to their deposits, a move similar to that which was made to ensure depositors at the failed Silicon Valley Bank will get their money back.
“All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer,” the regulators said.
The regulators shuttered Silicon Valley Bank on Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis — and the second-largest ever. The dramatic moves come just days after the tech-focused institution reported it was struggling, triggering a run on the bank’s deposits.
Signature is one of the main banks to the cryptocurrency industry, the biggest one next to Silvergate, which announced its impending liquidation last week. It had a market value of $4.4 billion as of Friday after a 40% sell-off this year, according to FactSet.
As of Dec. 31, Signature had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.
To stem the damage and stave off a bigger crisis, the Fed and Treasury created an emergency program to backstop all deposits at both Signature Bank and Silicon Valley Bank using the Fed’s emergency lending authority.
The FDIC’s deposit insurance fund will be used to cover depositors, many of whom were uninsured due to the $250,000 cap on guaranteed deposits.
While depositors will have access to their money, equity and bondholders at both banks are being wiped out, a senior Treasury official said.
The article is written by DDay. “The Silicon Valley Bank Bailout Didn’t Need to Happen. The debate over protecting all deposits in a blink looks past the incompetence that got us here.” Buried in the fine print of the joint statement is something exciting. It states that “certain unsecured debtholders” and shareholders are not protected. Certain unsecured debtholders may likely apply to crypto-tainted accounts used to secure debt. The Fed has been anxious to get more involved with the rogue market. Will today’s Republican Congress let them?
The brightest minds in and around San Francisco Bay had an unadulterated meltdown over the weekend over the failure of Silicon Valley Bank. This was a failure that they themselves caused, mind you, engineering a digital flash bank run that forced SVB to realize heavy losses, mostly from interest rate hikes and the bank’s unbelievable failure to even attempt to manage interest rate risk.
The venture capitalist–led mob quickly moved on to another dire warning: Because over 90 percent of SVB’s depositors exceeded $250,000 in guaranteed FDIC insurance, the government must make them 100 percent whole, immediately, or every regional bank in America will see the same failure. Hedge fund titan Bill Ackman, venture capitalist David Sacks, and angel investor Jason Calacanis led the charge, saying that thousands of startup firms will have trouble making payroll, and other regionals won’t be able to stop a torrent of withdrawals. They essentially took out a match next to a gas pump and demanded that federal regulators not force them to light it.
It worked. Federal officials announced a backstop to “fully protect all depositors” at both Silicon Valley Bank and Signature Bank, which was also closed on Sunday. “Depositors will have access to all of their money starting Monday, March 13,” the joint announcement by Treasury, the Federal Reserve, and the FDIC read. A special bank assessment will offset losses, they say; all shareholders and bondholders “will not be protected,” with senior management fired. A $25 billion fund has been initiated to protect deposits, even though the theory is that no taxpayer funds will be implicated.

Run on San Antonio’s City-Central Bank and Trust Company during the Depression, 1931
Have I ever mentioned how much I’d admire California Representative Katie Porter?
THE FIRST WORDS OUT OF THE MOUTH of Rep. Katie Porter (D-CA) when I talked to her on Sunday were: “Can you believe we have to talk about this shit again?” She was referring to a conversation we had in 2018, when she was still just a financial expert and a candidate for Congress, about S.2155, which I call the Crapo bill, a reference to its co-author (Idaho Republican Sen. Mike Crapo) and its underlying contents.
Some of these provisions don’t mitigate risk; they encourage it. For depository institutions with fiduciary responsibilities, it’s like giving Bourbon-drenched pecan pie to alcoholics. Remember when Bill Gates sold Tesla short? Anyone with an excellent eye for financial statement analysis can see this stuff coming. But wait, how do you explain that “KPMG Gave SVB, Signature Bank Clean Bill of Health Weeks Before Collapse. Accounting firm faces scrutiny for audits of failed banks“? This is from Jonathan Weil and WSJ.
Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit.
What KPMG knew about the two banks’ financial situation and what it missed will likely be the subject of regulatory scrutiny and lawsuits.
KPMG signed the audit report for Silicon Valley Bank’s parent, SVB Financial Group SIVB 0.00%increase; green up pointing triangle, on Feb. 24. Regulators seized the bank on March 10 after a surge of withdrawals threatened to leave it short of cash.
“Common sense tells you that an auditor issuing a clean report, a clean bill of health, on the 16th-largest bank in the United States that within two weeks fails without any warning, is trouble for the auditor,” said Lynn Turner, who was chief accountant of the Securities and Exchange Commission from 1998 to 2001.
Two crucial facts for determining whether KPMG missed the banks’ problems are when the bank runs began in earnest and when the bank’s management and KPMG’s auditors became aware of the crisis.
This reminds me of Moody’s, which had no idea how to rate tranches of mortgage-based swaps and completely missed the boat on the Mortgage crisis in 2008. You may also remember Moody’s role during the Junk Bond Kings’ rule in the late ’80s. This was also a time of intense deregulation of the industry.
. Moody’s also missed this current one. “Moody’s Failed to Warn About Silicon Valley Bank’s Problems. The prestigious rating agency still gave the bank of startups an A rating until its collapse on March 10, repeating the same errors of the subprime crisis in 2008.” This is from The Street and Luc Olinga.
Fifteen years after the subprime mortgage crisis which devastated the global economy, rating agencies continue to make the same mistakes.
At least, this seems to be the case with the prestigious rating agency Moody’s Investors Service.
Regulators shut down California’s Silicon Valley Bank on March 10, after its US Treasury bets went awry, due to the interest rate hike by the Federal Reserve.
Consequently, the Federal Deposit Insurance Corporation (FDIC) seized its assets and created a new entity, which will begin operating on March 13.
Created in 1983, Silicon Valley Bank, which presented itself as a “partner for the innovation economy,” offered higher interest rates on deposits than its larger rivals, to attract customers. The company then invested the clients’ money in long-dated Treasury bonds and mortgage bonds with strong returns.
Moody’s Gave Silicon Valley Bank an A Rating
This strategy had worked well in recent years. The bank’s deposits doubled to $102 billion at the end of 2020 from $49 billion in 2018. In 2021, deposits increased to $189.2 billion.
But everything turned upside down when the Federal Reserve began to raise interest rates, which made existing bonds held by SVB less valuable. As a result, the bank had to sell the bonds at a discount to cover withdrawals from its customers. In selling these bond positions, SVB had to take a significant loss of $1.8 billion.
Due to this loss, SVB suddenly announced that it needed to raise additional capital of $2.25 billion, by issuing new common and convertible preferred shares. This decision caused panic and a run on the bank.
While investors saw nothing coming, this is also the case with Moody’s Investors Service, whose role is to assess the intrinsic value of a company and its ability to meet its obligations, including its ability to pay lenders back. Rating agencies must flag the financial risks associated with a company.
But everything turned upside down when the Federal Reserve began to raise interest rates, which made existing bonds held by SVB less valuable. As a result, the bank had to sell the bonds at a discount to cover withdrawals from its customers. In selling these bond positions, SVB had to take a significant loss of $1.8 billion.
Due to this loss, SVB suddenly announced that it needed to raise additional capital of $2.25 billion, by issuing new common and convertible preferred shares. This decision caused panic and a run on the bank.
While investors saw nothing coming, this is also the case with Moody’s Investors Service, whose role is to assess the intrinsic value of a company and its ability to meet its obligations, including its ability to pay lenders back. Rating agencies must flag the financial risks associated with a company.

American Union Bank, New York City. April 26, 1932.
I’ve lived through a banking crisis in charge of strategic planning and financial statement forecasting for one of the original too big to fail Savings and Loan Companies in the early 1980s. I was also trying to hedge our loan commitments using GNMA futures which is why Derivatives are real to me. Any time interest rates start moving in the wrong direction and any bank that hasn’t realigned their related risks, like being long on one side of the balance sheet and short on the other, you’ll lose big.
I had to tell the head of Financial Operations there was no way to break even when every rate marks an asset to market with every tick, and you’re mismatched. I was barely 25 at the time. I also saw loan brokers selling mortgages where due diligence was lacking in 2005. A student told me he was being offered a mortgage based on his student loan as income. I can’t imagine any in-house loan officer being that ignorant. That’s what happens when you farm out your core business ou to salespeople earning money by volume. I can’t imagine how Moody’s or major Auditing firms keep missing this. They’re probably as captured by their customers as the politicians are captured by their lobbyists and checks. Right Senator Sinema?

James Stewart and Donna Reed in a scene from the film ‘It’s A Wonderful Life’, 1946. (Photo by RKO Radio Picture/Getty Images)
So, these bank runs don’t exactly look like the ones in those black-and-white photographs from the 1930s. This is a good explanation from Fast Company. What exactly is a Digital Flash Bank Run? It’s not a DC comic. Silicon Valley Bank: An ‘It’s a Wonderful Life’ bank run for the digital age. The downfall of the Valley institution, which has been called “the backbone of the startup economy,” was caused by a good old-fashioned bank run, but one that ran at internet speed.”
The run began on Thursday, after a powerful Silicon Valley VC—Peter Thiel’s Founders Fund—had begun advising its portfolio companies to withdraw their money from SVB, sources told Fast Company. Other VCs soon caught wind of the advisory and began advising their own portfolio companies to withdraw funds from SVB, the people said. As the withdrawals accelerated, the bank began taking steps to stem the tide and preserve its solvency—just like George Bailey did in the 1946 classic It’s a Wonderful Life.
SVB Financial Group CEO Greg Becker seemed to be reading from director Frank Capra’s script when he uttered the fateful words “stay calm” during a Thursday conference call with customers, as fears over the bank’s solvency grew. Those words probably only increased depositors’ anxieties. And the withdrawals likely continued to snowball.
“The whole thing was predicated on a few folks who put out calls to make withdrawals,” Spencer Greene, a general partner at the venture fund TSVC, tells Fast Company. “I think the folks who made those calls weren’t correct on the facts, but once the thing got going it was hard to stop.” In other words, before the run started there was not sufficient evidence to suggest the bank was facing serious solvency issues.

Northern Rock Bank run, September 2007
Just another point, we knew these things could happen. Here’s a 2019 article speculating about a digital bank flash run by Joe McGrath, writing for The Raconteur. “Turmoil, panic and bank runs in a digital future.”
Potentially, cash can now be transferred from accounts in greater amounts, more quickly than before and, even if banks enforce temporary limits on online withdrawals, what effect would the resulting panic have on the banking system as a whole?
“In a world without physical cash, the rules of engagement for situations such as a bank run will require a different framework,” says Simon Fairbairn, director of solution development, western Europe, for Ingenico Group. “The rules and systems of today will need to evolve to accommodate the demands of a run.”
Mr Fairbairn questions whether present digital banking infrastructure is sufficient to cope with sustained pressure of this nature. “Regulation, compliance, technology; processes have all evolved to try and prevent the sins of the past, but until tested, can we really be sure it won’t already be found wanting,” he says.
It may sound like scaremongering, but Mr Fairbairn’s cautious view has broad support from many in the financial services community.
“A digital bank run in a hypothetical future would be much more dangerous as it would happen in seconds and minutes when clients could simply use mobile banking apps to transfer money to another account,” says Susanne Chishti, chief executive of Fintech Circle.
“Such a digital bank run would be much more difficult to contain and an appropriate technical response for such a scenario would have to be coded in at the outset to offer any chance of being effective.”
In 2020, Harvest Finance experienced the first type of digital bank run. “Harvest Finance: $24M Attack Triggers $570M ‘Bank Run’ in Latest DeFi Exploit, Harvest Finance has seen its total value locked drop by more than $500 million in the 12 hours since being hit by a flash loan attack.” DeFi is short for Decentralized Finance, which is based on peer-to-peer finance services on blockchains. Welcome to the Wild West World of cryptocurrency and bitcoins. This should give you pause.
An arbitrage trade exploiting weak points in decentralized finance (DeFi) protocol Harvest Finance led to some $24 million in stablecoins being siphoned away from the project’s pools on Monday, according to CoinGecko.
According to reports, an attacker used a flash loan – a technique that allows a trader to take on massive leverage without any downside – to manipulate DeFi prices for profit. The exploit sent the platform’s native token, FARM, tumbling by 65% in less than an hour, followed by the project’s total value locked (TVL), which dropped from over $1 billion before the exploit to $430 million as of press time.
The funds were eventually swapped for bitcoin (BTC), but not before being swept through Ethereum mixing service Tornado Cash.
The jargon term for this was a “bad harvest.” Stay out of this stuff is the only thing I have to say, which is the advice I would have given to these banks. Unfortunately, Silicon Valley is rife with Elon Musk Clones taking risks for adventure and attention. All traders have their own language. I’m still surprised youngest daughter can keep her department of derivatives traders and products on a leash. They’ve always thought of themselves as Wild West Cowboys. (See Lions of Wall Street.) But then, she and the brokerage firms she’s worked for are licensed and babysat by the SEC to keep the nonsense in check. We both stay out of this market.
So, a part of this and a bit more will be a lecture for me tomorrow. Last year the Game Stop thing did this to me. You’ll be glad to know billionaire Carl Icahn is happy about that crash. Someone always is because there are two sides to every trade. If you’re head’s spinning, you’re doing just fine. I got a Ph.D. and real-life experience in the stuff, plus a daughter that lives it daily and who I consult for a reality check. It still makes my head spin.
What’s on your reading and blogging list today?
And the SEC is far behind
Down in the swamp with the gators and flamingos
A long way from Liechtenstein
I’m a junk bond king playing Seminole Bingo
And my Wall Street wiles
Don’t help me even slightly
‘Cause I never have the numbers
And I’m losing nightly
I cashed in the last of my Triple B bonds
Got a double-wide on the Tamiami Trail
I parked it right outside the reservation
Fifteen minutes from the Collier County Jail
(Warren Zevon, backed up by Neil Young live)
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