The three declared GOP 2024 presidential contenders had something to say about the startling failure of Silicon Valley Bank (SVB) over the weekend, with the Trump campaign blaming the anti-America policies of the Biden administration and Haley and Ramaswamy all speaking out against a prospective taxpayer rescue.
The SVB, the sixteenth-largest bank in the United States and headquartered in Santa Clara, California, went under last week and is currently managed by federal regulators.
There are others who believe the government should protect depositors because the FDIC only covers $250,000 in losses. Many people worry about a chain reaction of withdrawing their FDIC-insured deposits when they become available on Monday.
Trump’s campaign responded with fire when leftists attacked him for signing a bipartisan bill in 2018 that took back parts of the Dodd-Frank Act.
Steven Cheung, a spokesman for the Trump campaign, informed the media that the out-of-control Democrats and the Biden administration had been desperately lying to attempt to blame President Trump for their disasters like the CCP surveillance balloons, the railway derailment in East Palestine, and the collapse of SVB.
He says this is a pitiful attempt to gaslight the people to avoid accountability. Biden’s anti-American policies have presided over a disastrous economy that has destroyed everyday Americans throughout the country.
The former U.S. UN ambassador, Haley, stated that a corporate bailout is not an option.
She tweeted that the government should not provide a bailout for Silicon Valley Bank. The bank’s assets can be sold to private investors, and the government of the United States is not obligated to step in and guarantee the sale.
Ramaswamy, the founder of Roivant Sciences and Strive Asset Management, tweeted that SVB should be allowed to fail. In hopes of preventing a bank run on Monday, the FDIC should enhance its guarantee level.
By tweeting that, he hoped to reduce the likelihood of a run on other banks and expand the FDIC’s insurance coverage. Yet SVB messed up by not properly considering interest rate risk in two different contexts: the concentration risk of working with startups as clients and the risk of investing in assets sensitive to interest rate changes. So did the many startups who blindly did business with them, and it’s not the U.S. taxpayer’s job to now coddle them.
On Sunday, U.S. Treasury Secretary Janet Yellen indicated that the federal government would not bail out SVB but would try to help depositors who stand to lose millions due to the bank’s failure last week.
Yellen has made it clear that bailouts of this nature would never happen again. Yet, they worry about their depositors and make it a priority to serve their requirements.
Yellen stated that she had spent the whole weekend with bank regulators formulating measures to address this scenario but that she was unable to share any further information at this time. She feels strongly that the American banking system is resilient, secure, and well-capitalized.
When asked for comment, the SVB did not provide a statement.