![]() For all the shortcomings of our financial system, at least directors, executives, and other insiders are required to file financial disclosures when they acquire and sell shares. It is not difficult to dig up information on director compensation. Frank held at the date of his latest financial disclosure will end up being worthless, but my research indicates that he has received nearly $2 million in cash for serving on the bank’s board over the past eight years. It is probably true that the 5,541 shares of Signature Bank that Mr. However, it seems like the mainstream media is still missing the real story when we are told that shareholders of these banks will likely be wiped out. Frank’s name started to appear in articles today, including in this morning’s Wall Street Journal coverage of the Signature Bank failure. Surely the presence of a co-author of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the board of a failed bank that catered to the cryptocurrency industry is big news. As I read some of the early mainstream media articles on Signature Bank over the weekend, I was bemused to see no references to Barney Frank who has been a director for nearly eight years. One of the most outrageous aspects of corporate America in the twenty-first century is the extent to which “public servants” in oversight roles are blatantly rewarded with cushy sinecures once they retire. It’s just a short drive up Interstate 280 to Sand Hill Road (Exit 24). These highly paid individuals will be just fine and, since there seems to be little shame left in corporate America, most of the bank executives who need to work in the future will find gainful employment. I have no doubt that ordinary shareholders of these banks will be wiped out, but don’t cry too much worrying about executives and directors. Today, we are being told that the system had to be protected “for the good of the economy” but, rest assured, the shareholders, directors, and executives of these failed institutions will suffer severe financial consequences. ![]() I described the bailout earlier today after outlining the problems at Silicon Valley Bank on Saturday and making a plea for the government to resist calls for bailouts on Sunday. To suggest otherwise is to engage in shameless gaslighting. The reality is more complex.ĭespite the disingenuous and hypocritical statements of billionaire apologists of crony capitalism, the government’s actions last night certainly represent a bailout for the wealthy individuals and corporations that had uninsured deposits at Silicon Valley Bank and Signature Bank. Apologists for crony capitalism are telling the American people that shareholders and executives of failed banks will be wiped out.
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