GOP presidential contenders cast blame for Silicon Valley Bank collapse

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  • Former President Donald Trump and other 2024 Republican presidential candidates speak on the failure of Silicon Valley Bank.
  • Florida Govt. Ron DeSantis suggested that diversity, equity and inclusion initiatives were to blame for the bank’s failure.
  • Biden in a speech called for a “full accounting” of the situation and steps to be taken to reduce the risk of future bank failures.

Former President Donald Trump and Other 2024 Republican Presidential Candidates Talked Failure Over the Weekend Silicon Valley Bankoffer early indications of their diverse approaches to the markets.

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Trump, widely considered official and the frontrunner in an early field of potential candidates, took the opportunity to lash out at President Joe Biden while offering no details on how he would handle the situation differently.

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In a Truth Social post on Saturday, Trump issued a full-caps prediction that “we will have a much bigger and more powerful depression than in 1929. As proof, the banks are already starting to collapse!!! “

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The claim came after Trump’s spokesman said in a statement to Fox News that “Biden has presided over a horrendous economy that has devastated everyday Americans and caused misery across the nation because of his anti-American policies.” made.”

Meanwhile, Florida Governor Ron DeSantis, who is seen as Trump’s top Republican competitor even though he has not yet officially announced a White House bid, suggested the bank’s failure was to blame. , equity and inclusion initiatives were to blame.

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“This bank, they’re so concerned with DEI and politics and all kinds of things, I think that’s really diverted them from focusing on their core mission,” DeSantis said in a Fox interview Sunday morning.

In SVB’s website a Page to its embrace of diversification initiatives – but experts have attributed the collapse to a chain reaction stemming from interest rate increases and the bank’s failure to hedge against it effectively.

DeSantis also appeared to complain about over-regulation, saying, “We have a huge federal bureaucracy and yet it seems like they’re never there to be able to stop something like this.” Is required.”

Silicon Valley Bank, or SVB, was shut down by financial regulators last week, marking the biggest failure of a banking institution since the 2008 financial crisis. The sudden collapse of the country’s 16th largest bank, a major player in the tech industry, has triggered a wave of fear whether its impact will spread to other major banks.

The government on Sunday evening announced a scheme to ensure depositors in SVBs signature bankAnyone who was shut down, a major lender to the cryptocurrency industry, would have full access to their deposits. Bank regulators insisted that taxpayers would not cover the cost of insuring deposits. He said a special fee would be assessed to federally insured banks to replenish the Deposit Insurance Fund.

Biden called for a “full accounting” of the situation in a speech on Monday and steps to reduce the risk of future bank failures. He also said that “investors in the banks will not be protected,” adding, “That’s how capitalism works.”

Biden, who is expected to announce he will seek re-election in 2024, delivered the speech after several potential rivals weighed in on the crisis.

Former South Carolina Gov. Nikki Haley declared Saturday night, “Taxpayers should not be bailing out our Silicon Valley bank.”

“Private investors can buy the bank and its assets. It is not the responsibility of the American taxpayer to step in,” Haley said in a statement.

The Biden administration has balked at the notion that it is bailing out the banks, with officials noting that shareholders and bond holders in the banks are not being protected.

In a follow-up tweet on Monday, Haley raised the issue of that rotation.

“Joe Biden is pretending this isn’t a bailout. It is,” she tweeted. “Now depositors of healthy banks are forced to subsidize Silicon Valley bank mismanagement. When the deposit insurance fund dries up, all bank customers are on the hook. It’s a public bailout.”

It said that the SVB depositors should be paid by selling off the bank’s properties.

Trump also accused “out-of-control Democrats” of blaming Trump for the collapse. Some lawmakers, including Sen. Bernie Sanders, I-Vt., and other critics have recently pointed to legislation signed by Trump in 2018 that rolled back some banking regulations. The bill received bipartisan support in Congress, although the measure was criticized by some Democrats at the time.

In a statement, Sanders said, “Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump, which I strongly oppose.” statement sunday.

Vivek Ramaswamy, is an entrepreneur and conservative political commentator jump After joining the GOP primary race last month, he argued on Twitter that the government should “allow SVB to completely fail” without protecting its depositors.

“The Federal Deposit Insurance Corporation should get out of the way and let whoever wants to acquire SVB actually do the deal,” Ramaswamy tweeted on Saturday.

Steve Laffey, another GOP presidential candidate, said in a statement Saturday that his own party and America “have avoided facing our problems directly for too many years, and the results have been disastrous.”

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