SVB collapse: Biden risks renewed economic worries and anti-bailout backlash

President Joe Biden The government is trying to reassure people who still remember the 2007-08 financial crises that the country went through. Banking system Their deposits are secure.

Although Republicans are quick to criticize the executives of the now-defunct, Silicon Valley Bank They are investigating Biden, who they believe contributed to the economic conditions that caused the institution’s collapse. Budget And debt ceiling Standoff with the White House.

BIG SPENDER? DEFICIT CUTTER?? MIXED MESSAGE OF BIDEN ON THE BUDGET

Biden and his Administration are “getting very good” According to Rep. Dan Meuser, R-PA), they were able to respond to crises and even helped to create them.

“I wouldn’t say they completely caused this one, but the environment they created caused that,” He told the Washington Examiner.

Meuser, an ex-businessman who represents Pennsylvania’s coal region from 2019 to 2019, is now on the House Financial Services CommitteeSVB’s investments having been devalued by, was cited. interest rate rises Introduced to Counter “Bidenflation” The “root cause'” Shuttering of a technology-focused institution.

“Secondly, there was no basic bank supervision,” He stated. “It’s just hard to understand when you have the [Office of the Comptroller of the Currency] and [Gary] Gensler at the [Securities and Exchange Commission] spending all this time on what I think are illegal [environmental, social, and governance] enforcement mandates, and when something like this occurs, you can’t help but think that they’ve got their eye off the ball.”

Meuser said that he didn’t support more red tape but preferred the federal government to regulate him. “just enforce the regulations that currently exist.”

Rep. John Rose (R.TN), another member of the House Financial Services Committee, compared empowering regulators. “allowing the arsonist to be a firefighter.”

“To be clear, this is a bailout regardless of what the administration says,” He stated. “The [Federal] Deposit Insurance Fund is backed by the Treasury, which taxpayers fund. So the bottomless bailout Biden proposed this morning will surely be sponsored by Americans in one way or form.”

Ralph Norman (R.S.C.) rejected Biden’s claim that SVB’s predicament was allowed by Former President Donald Trump The attempt to demolish the Dodd-Frank lawAfter the financial crisis, it was implemented. He is also concerned by the precedent Biden set, guaranteeing deposits above the $250,000 Federal Deposit Insurance Corporation insurance policy limit. It is not clear if it has adequate funds.

“We’ll wade into the bank situation and see what happens,” He stated. “In the meantime, we’ve got his budget to look at, which makes no sense. We will have our ultimate budget proposal that hopefully will pass in the House. Biden’s budget is dead on arrival. It is part of the regulations and taxes that are causing the economy to flounder.”

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