• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Lawmakers weigh having regulators monitor social media for bank panics
Editor's Pick

Lawmakers weigh having regulators monitor social media for bank panics

by April 2, 2023
by April 2, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

After a handful of influential voices took to social media during the meltdowns of Silicon Valley and Signature banks this month, some lawmakers have floated a new idea: Task bank regulators with keeping tabs on TikTok, Twitter and other platforms to head off future bank panics.

Rep. Ritchie Torres, D-N.Y., introduced legislation Wednesday that would require the Financial Stability Oversight Council, a coalition of U.S. financial regulators, to monitor social media platforms for “any indicator of a potential bank run or financial panic at a level that potentially threatened the financial stability of the United States.”

Torres, who announced the proposal on MSNBC, said monitoring social media could also address concerns over foreign interference.

“I worry that a malicious foreign adversary could manufacture financial panic on social media to destabilize the American banking system,” Torres said on MSNBC’s “Morning Joe.”

At a House Financial Services Committee hearing Wednesday, several other lawmakers expressed worry about social media’s role in triggering bank runs. Rep. Blaine Luetkemeyer, R-Mo., said he had “grave concerns” about that possibility.

Bank regulators acknowledged this week that online panic may have helped hasten SVB’s failure, although they also cited the ease of pulling deposits due to digital banking.

“I do agree that the runs that occurred at Silicon Valley [Bank] were unprecedented in speed and size, aided by social media and technology,” Nellie Liang, the undersecretary of the treasury for domestic finance, said in congressional testimony Wednesday. “Those are new risks that challenge the banking system and the financial system and are those we definitely need to be considering and working with Congress.”

Three weeks ago, SVB dumped a bad bet on interest rates that cost it $1.8 billion, sparking fears among depositors that it was strapped for cash.

This post appeared first on NBC NEWS
You Might Also Like
  • Higher tax filing costs could take a bite out of your refund
  • TOTO Announces a Collaboration with Comcast’s MachineQ on Smart Restroom Integration
  • Trump commutes sentence of Ozy Media founder Carlos Watson
  • Google says U.S. is facing a power capacity crisis in AI race against China
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Before DeSantis’ Disney takeover, it gave itself new powers in special Orlando district
next post
Delta Neutral Trading: What Not to Do and How to Fix It

You may also like

Smart electricity meter penetration rate in Europe reached 56 percent...

November 23, 2022

OpenAI closes funding at $157 billion valuation as Microsoft, Nvidia,...

October 3, 2024

Hours after state board rebuke, Disney announces groundbreaking for affordable...

April 21, 2023

Smucker agrees to buy Twinkie maker Hostess Brands for $5.6...

September 13, 2023

Fed Chair Powell says there has been a ‘lack of...

April 17, 2024

How Volvo landed a cheap Chinese EV on U.S. shores...

April 26, 2024

Emirates’ chairman has a message for Boeing: ‘Get your act...

May 8, 2024

Consumer protection board sues Walmart and fintech firm over gig-worker...

December 24, 2024

Swiss regulator offers lifeline to Credit Suisse after its troubles...

March 16, 2023

Disney to combine its Hulu+ Live TV with streamer Fubo

January 6, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,631 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    How a $5 million fix turned...

    March 4, 2025

    Disney rolls out line-skipping park passes...

    October 17, 2024

    Consumers are starting to feel better...

    July 15, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here