Whitewash

It seems the Federal Reserve knew of the risks stemming from SVB management moves as long ago as 2019 [emphasis added].

In January 2019, the Fed issued a warning to SVB over its risk-management systems, according to a presentation circulated last year to employees of SVB’s venture-capital arm….
The Fed issued what it calls a Matter Requiring Attention, a type of citation that is less severe than an enforcement action. Regulators are supposed to make sure the problem is addressed, but it couldn’t be learned if the Fed held SVB to that standard in 2019.
…
Following the 2019 warning, the Fed informed SVB in 2020 that its system to control risk didn’t meet the expectations for a large financial institution, or a bank holding company with more than $100 billion in assets, the presentation to employees at SVB’s venture-capital arm said.

And:

Over time, the central bank issued numerous warnings to SVB, suggesting the bank’s problems were on the radar of the Fed, the bank’s primary federal regulator.

So, what was done by the Fed’s regulators in response to this string of noncompliances?

A central-bank review of its oversight of SVB is due by May.

Will those prior whitewashes be followed up with an official whitewash?

I’m not holding my breath over a favorable outcome, which IMNSHO would include, at the very least, the public firing for cause of the Fed regulator(s) directly responsible for SVB oversight and that individual’s/team’s supervisor. Pour l’encouragement des autres régulateurs.

Public School Ownership

In an op-ed centered on the question of who owns institutions of higher education like universities, Richard Vedder, Professor Emeritus of Economics at Ohio University, identified seven categories of people who claim ownership of these institutions:

  • The board. Most schools, public or private, are overseen by a legally constituted governing board.
  • The politicians. At public institutions, state government usually is the legal “owner” of the school.
  • The administrators. A school’s president and senior bureaucrats are vested with executive responsibility, which resembles ownership.
  • The faculty. The professors who administer academic offerings and conduct grant-inducing research often feel the school belongs to them.
  • The students. They are a primary reason for the school’s existence and their families pay substantial tuition and fees.
  • The alumni. Graduates constitute the donor base at most private schools and some public ones as well.
  • The accrediting agencies. The federal Education Department charges these bodies with certifying an institution’s right to confer degrees.

I have thoughts.

Board members are charged with organizational governing oversight, but they own nothing, except through personally funded stakes. Board members serve at the pleasure of the school’s owners.

Politicians, acting through the governments of which they’re a part, so long as they’re duly elected or appointed by those duly elected, do act in an ownership capacity vis-à-vis public colleges and universities, and they hire and fire employees like board members—and administrators and faculty—as they see fit. The same capacity is held by private institutions’ owners: partners; private share holders; in the case of publicly traded schools, those shareholders; and religious institutions regarding their parochial schools.

Administrators, like board members, own nothing in their capacity of administrators. They’re employees of the school’s owners, hired to conduct the day-to-day administration of the school within the framework established by the board—and the school’s owners.

Faculty claiming ownership only demonstrate their own self-absorbed arrogance. They’re employees, nothing more.

Students claiming ownership are showing their own, even deeper, obliviousness, an ignorance fostered by those same faculty members. Students are customers of the school. Full stop.

Alumni are even further removed from any trace of ownership, except in the depths of their own fetid imaginations. They’re ex-students, and nothing more, no matter the size of their fiscal donations.

Accrediting agencies claiming ownership is risible on its face. That’s like raters like a Moody’s or auditors like a Deloitte claiming ownership of the companies they’re rating or auditing.

An Attack on Workers’ Rights

Hypocritically, it’s by the Progressive-Democratic Party, which runs Michigan’s government. That’s the party that claims to champion the rights of America’s workers.

[State] Senate Democrats voted along party lines in support of repealing the decade-old “right-to-work” law in a state long considered a pillar of organized labor.

The State’s House already had passed a substantially similar bill, now the two go to conference to reconcile the differences, then the result will be voted up in both houses and sent to Governor Gretchen Whitmer (D) to be signed into law.

Michigan’s workers, for the last decade, had been able to speak for themselves, to join or not join unions, to not pay dues to unions to which they didn’t belong.

The Michigan government is telling those workers they have no voice, and their wishes have no importance. Oh, and pay up, suckers.

So much for workers’ rights when Progressive-Democrats reign in Michigan.

Balancing Act

That’s what conventional “wisdom” says confronts the government of Australia as it contemplates buying nuclear-powered submarines from the US. The buy is part of AUKUS’ combined effort to counter the People’s Republic of China’s military buildup and its continued strengthening of the PLA in the PRC’s occupation of the South China Sea.

Australia is trying to strike a balance between its close relationship with the US and its ties to China, which buys much of its valuable iron ore and is its largest trading partner.

There’s nothing to balance here. There are lots of nations, all over the world, with an interest in buying Australian iron ore, Australia’s iron processed from that ore, such steel as Australia chooses to produce. There is a wide world of existing and potential trading partners for Australia’s other goods and services. Shipping need not be that expensive, either: the nations metaphorically next door that rim the South China Sea, the Republic of China, the Republic of Korea, and Japan all have need of iron ore and iron and are interested in the plethora of additional goods and services that Australia might sell.

Australia has no need of the PRC’s market, and the sooner it divests itself, the sooner it will shake its dependency on and pressure from the PRC.

Another Biden Admin Diplomatic Failure

This one in our backyard. On the heels of the People’s Republic of China’s brokering a rapprochement between Saudi Arabia and Iran, right under Secretary of State Antony Blinken’s nose, the PRC apparently has convinced Honduras President Xiomara Castro to end her government’s recognition of the Republic of China and switch that recognition to the PRC.

This also has happened under Blinken’s nose.

I have to ask: did Blinken and his boss President Joe Biden (D) really not know this move was in progress? If not, why not? If so, what were they doing about it, and why did they fail?

Folks thought former President Donald Trump was pulling our nation back from world involvement. The Biden administration is showing what full retreat looks like. But Ukraine, you say? Biden is doing his utmost to avoid that, with his retreat from Russian President Vladimir Putin’s threats and his deliberate, bloody, slow-walking transferring arms and ammunition to Ukraine.