SVB collapse: Bank crisis becomes another Biden vs. Trump war ahead of 2024

THe partisan war of words is over Silicon Valley BankPresident Obama is already at the brink of collapse. Joe Biden He launches one of the first volleys.

Monday’s speech by Biden was about the collapses of Silicon Valley Bank & Signature Bank. He reassured that “they are still standing.”The banking system is secure.” He also strongly suggested that the collapses were the Donald Trump’s fault.

NONCOMMITTAL BILL BY WHITE HOUSE THAT DECLASSIFIES COVID-19 ORIGINS INELLIGENCE

“During the Obama/Biden administration, we put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank law to make sure the crisis we saw in 2008 would not happen again,” Biden said. “Unfortunately, the last administration rolled back some of these requirements. I’m going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure will happen again, and to protect American jobs and small businesses.”

This sparked a partisan war, even though details of the crisis were still being worked out. are still unfolding.

Progressives Biden’s words were echoedAccording to him, the 45th president was responsible for signing the 2018 law which raised the asset threshold for banks that fall under Dodd-Frank’s control from $50 billion to $250 trillion.

“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 that I strongly opposed,” Sen. Bernie Sanders (I-VT) stated in a statement.

Republicans were prepared for battle and rejected new regulations.

“The Biden bank bailout is a result of Biden’s failed economic policies,” David McIntosh (Club for Growth President) “The additional regulations being proposed by Biden would only make the situation worse and further consolidate power among the big banks and hurt regional banks that small businesses rely on.”

Senator Tim Scott (R.S.C.), ranking member on the upper chamber’s bank committee, also rejected regulation as the solution.

“SVB’s failure is the result of mismanagement and failed supervision,” Scott spokesperson. “Regulators failed to do their job with regard to SVB, and if regulators can’t do their job with what the law gives them now, why is giving them more regulations the better route?”

Patrick McHenry, Chairman of the House Financial Services Committee (Republican-NC), said that he has confidence in “the protections already in place” While calling Silicon Valley Bank “the first Twitter-fueled bank run.”

Republicans launched an attack on Democrats Inflation highThis is something that the Fed has been trying to combat aggressive interest rate hikes That A role Silicon Valley Bank’s fall. Biden was blamed by Republicans, specifically the American Rescue Plan Act: $1.9 Trillion