Rahul Gandhi's theatrics

 

The Bharat Jodo Yatra has made news. It is not possible to say if it was a success because we do not know what its objectives were. Perhaps Rahul himself is not aware.

He observed during the yatra that " women are still being sexually assaulted." This is indeed a serious allegation, the kind that makes other nations sit up and wonder what is happening in and to India.

The police obviously wants to know who are sexually assaulting women so that they can be dealt with legally. Rahul is unable to give details immediately. He only wants to know if the government is crass with him because he is raising the Adani issue.

Rahul Gandhi is unable to abstain from making crude allegations without preparing groundwork. He is coached by advisors who perhaps are misleading him. 

Silicon Valley Bank

 

The unforeseen rapid fall of SVB is an appropriate plot for a business novel. This was caused not by mismanagement. The unholy combination of substantial withdrawal of deposits and drop in value of government securities was the primary cause of this debacle. 

Nearly 95% of deposits were above the insured limit. The government, the FED and FDIC have decided that all deposits will be repaid. This is possibly a moral hazard. There will hereafter be a clamour for such exemptions during any future bank failure.

HSBC (UK) has agreed to purchase SVB (UK) at a nominal price of 1 British Pound. SVB (UK) earned profit of 88 million pounds last year. Its deposit is 6.7 billion pounds and advances 5.5 billion pounds. HSBC has made a sensible decision.

There are two features in the American banking system which deserve a revisit. The moment loss exceeds the capital, a bank is declared insolvent and final rites are set in motion. Secondly, there is rarely any regulatory forbearance. The Indian system gives time for the bank to recover. The RBI does not hesitate to provide forbearance to a deserving bank.

The FED hopes that the SVB problem has been contained and there will not be any major fallout. But banking events have a tendency to upset the regulator's calculations. 

Pegasus again

 Rahul Gandhi has raised the Pegasus issue once again, this time from Cambridge. He states that his mobile had Pegasus earlier and some opposition leaders are spied on even now. He has even clarified that some intelligence officials had approached him with the information that they were recording his mobile conversations. When the Supreme Court - appointed Committee had earlier asked for the mobiles of opposition leaders to see if they were subject to surveillance, they preferred not to hand over their mobiles. 

Too many allegations without evidence trivialises governance in a democracy. Since the Supreme Court is a sentinel on the qui vive to protect and nurture democracy (evidenced by its order on appointment of Election Commissioners) and governance (evidenced by its appointment of a committee to investigate lapses in capital market regulations), it should suo motu ask Rahul Gandhi to identify, under oath,  the intelligence officials who warned him that they were recording his mobile conversations. This will enable the nation to know the truth.